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Listed B2B fintech startup Zaggle’s FY24 revenue from operations rose 40.1% year-on-year (YoY) to Rs 775 crore, matching increased spends, while profits nearly doubled to Rs 44 crore, according to the consolidated financial statement.

In the previous financial year, the Hyderabad-based spend management platform earned Rs 553 crore in revenues.

Notably, in the last quarter of FY24, Zaggle reported its highest-ever quarterly revenue at Rs 273 crore.

“In FY24 and Q4 FY24, we set a new record in terms of revenue from SaaS fees, program fees and Propel Points. This led to our highest-ever performance across key profitability metrics during these periods,” said Raj P Narayanam, Founder and Executive Chairman, Zaggle Prepaid Ocean Services Limited.

Zaggle also increased spending by 39.2% to Rs 727 crore in FY24 from Rs 522 crore in FY23. Notably, the company’s expenditure on incentives and cash back more than doubled to Rs 216 crore in the financial year ended March 2024, from Rs 100 crore incurred in the previous financial year.

The company said the increase in incentive and cashback can be attributed to the increase in revenue and market push for Zoyer, its business spend management platform with embedded finance options.

Despite growing expenses, the company nearly doubled in FY24, and for Q4, it increased 154% YoY to Rs 19.1 crore. While gross profit has remained flat over the past few years, profit after tax has fluctuated: Rs 19.33 crore in FY21, which more than doubled to Rs 41.92 crore in FY22, and then decreased to Rs 22.9 crore in FY23.

During the year, the company’s debt decreased from Rs 121 crore to Rs 73 crore, leading to a reduction in finance costs YoY. However, the sequential increase in finance costs is attributed to fees associated with the prepayment of debt, it said.

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Zaggle Founder Raj N

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How fintech startup Zaggle pivoted from B2B2C to B2B SaaS platform for corporates

In FY24, Zaggle expanded its customer base with 620+ new corporates, including Wipro and Bennett Coleman, and onboarded new banking partners like SBI and ICICI Bank.

“Our expectation of revenue growth for this fiscal year is to the tune of 45%-55%. We are focused on garnering more market share and making significant investments in technology, specifically building deeper AI capabilities to cater to the massive demand for Spend management solutions,” Narayanam said in a statement.

“We intend to pursue inorganic growth opportunities through mergers and acquisitions. Additionally, we plan to expand geographically into the US markets as part of our growth strategy,” he added.

Zaggle offers digitised solutions for expense management, employee tax benefits, rewards and recognition programmes, and corporate gifting. It was founded in 2011 by Phani N Raj.

Zaggle listed on the market last year, debuting with an initial public offering (IPO) in September 2023. Its share price was up 1.08% to Rs 313.9 apiece at the end of trading today.