B2B fintech company Zaggle reported that its profit increased over eightfold, indicating a strong Q1 FY25 performance. Profit rose 8.3X to Rs 16.7 crore in Q1 FY25 compared with Rs 2 crore in Q1 FY24.
The publicly-listed Hyderabad company reported its revenue from operations more than doubled to Rs 252 crore, up from Rs 118.4 crore in Q1 FY24.
Expenses for the quarter also saw a similar rise, doubling to Rs 233.9 crore in Q1 FY25 from Rs 116.9 crore in the same period last year. A significant portion of this increase was due to the cost of point redemption and gift cards, which nearly doubled to Rs 110.4 crore, the company said in its filings.
Additionally, expenses attributable to incentives surged 3.5X to Rs 89.6 crore, reflecting the company’s aggressive market strategies to attract and retain clients. However, employee benefits expenses declined, marginally to Rs 14 crore.
Established in 2012 by Phani N Raj, Zaggle operates at the intersection of software-as-a-service (SaaS) and financial technology, focusing on business spend management. It primarily serves corporate clients by digitising and optimising their payment and expense workflows.
“We expect to continue a similar performance for upcoming quarters driven by an increased customer base, newer use cases, deeper penetration into the existing customers and cross-selling of our solutions,” said Raj P Narayanam, Founder and Executive Chairman of Zaggle, in a statement.
He added, “For this fiscal year, we project a revenue growth of 45% to 55% over the previous fiscal year. Additionally, we reaffirm our goal of doubling our revenue within the next two years. We expect our adjusted EBITDA to hold steady around current levels.”
Zaggle debuted on the Indian stock exchanges in September 2023 at the IPO issue price of Rs 164 per share. At market close on Tuesday, Zaggle’s stocks were up 1.10% trading at Rs 339 apiece.
“In line with our growth strategy, we are focused on inorganic growth opportunities in spend management space to enhance our leadership position. We are actively exploring complementary inorganic expansion opportunities and will provide updates as positive developments occur. These potential acquisitions would help Zaggle to scale faster,” he said.
