Zaggle, a prepaid cards provider, recently secured a significant order from Visa to produce prepaid forex cards. According to media repots, this five-year deal is valued at USD 20 million and is considered a growth agreement for Zaggle, as it grants access to Visa’s vast network.
In addition to a launch bonus, Zaggle will receive incentives based on the usage of the prepaid forex cards. The partnership also opens the door for Zaggle to offer forex cards to employees of partnered companies, further expanding its user base.
This positive development has had a notable impact on Zaggle’s stock price, which reached a new 52-week high of Rs 247.70. Currently trading at Rs 244 per share, the stock has seen a remarkable increase of 48 per cent compared to its listing price of Rs 164. Zaggle recently went public in September and experienced overwhelming demand, with its initial public offering oversubscribed 12.57 times on the final day.
Established in 2012 by Raj P Narayanam, Zaggle specialises in network-agnostic prepaid cards for corporates, serving as rewards and reimbursement tools. The company also offers fintech SaaS solutions for expense management. With a substantial presence in the Indian market, Zaggle has issued over 50 million prepaid cards to date, serving more than 2,400 lifetime business-to-business customers.
According to its red herring prospectus, Zaggle’s profit after tax (PAT) for the financial year 2022-23 decreased to Rs 22.9 crore from Rs 41.9 crore in the previous fiscal year. However, its operating revenue surged to Rs 553.5 crore in financial year 2023 from Rs 371.2 crore in the preceding year. This partnership with Visa is expected to further enhance Zaggle’s revenue and growth prospects in the coming years.
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