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Zaggle, the corporate payments fintech, reported its best ever quarterly performance in the Q2 of FY25, showcasing highest year-over-year growth in both revenue and net profit.

The company’s revenue from operations surged to Rs 302.55 crore, up 64.21% from Rs 184.24 crore in Q2 FY24. This rise was accompanied by a notable increase in costs, with total expenses hitting Rs 280.5 crore, a 60.3% jump compared to Rs 174.98 crore a year ago.

Zaggle’s largest expense category, the cost of point redemption and gift cards, rose to Rs 161.93 crore, a 41.93% increase from Rs 114.09 crore in Q2 FY24. Employee benefits expenses remained steady at Rs 17.90 crore, virtually unchanged from the Rs 17.92 crore recorded in the same period last year.

The company saw a sharp increase in incentives and cash back expenses, which reached Rs 78.97 crore, more than tripling from Rs 25.78 crore in Q2 FY24.

Despite the higher costs, Zaggle’s net profit after tax climbed to Rs 20.29 crore, a rise of 167.67% from Rs 7.58 crore in the same quarter last year.

Zaggle’s Q2 performance benefited from a surge in prepaid and credit card volumes, alongside higher redemption rates, and new client acquisitions, it said in a statement.

The company’s topline increase was driven by a growing user base and a favorable shift in its product mix, contributing to improved gross profit.

Raj P. Narayanam, Founder and Executive Chairman of Zaggle highlighted Zaggle’s recent client additions, including Baroda BNP Paribas Asset Management, Blue Star, and HDFC Ergo General Insurance. He emphasized the company’s focus on “developing innovative, future-ready solutions and diversifying our revenue streams to drive sustained growth.”

Zaggle is also eyeing strategic expansions, with plans to pursue M&A opportunities within the SaaS fintech space, targeting segments such as NBFCs and Payments. To fuel this growth, the company has obtained board approval for a potential fundraise of up to Rs 950 crore, pending shareholder consent.

“We are very confident of doubling our FY24 revenues in the next two years,” Narayanam said, projecting a 50-55% increase in topline growth for FY25.