Zaggle Prepaid Ocean Services reported a significant rise in its net profit to Rs 16.7 crore in Q1FY25, driven by strong demand for its Zoyer and credit card solutions. Revenue also grew 113% YoY.
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New Delhi, Jul 30 (PTI) SaaS fintech platform Zaggle Prepaid Ocean Services on Tuesday reported a multi-fold rise in its consolidated net profit to Rs 16.7 crore in the June 2024 quarter.
It had posted a net profit of Rs 2.05 crore in the year-ago period.
However, the Hyderabad-based company saw a 12.7 per cent drop in its net profit during the quarter, sequentially.
Revenue from operations came in at Rs 252.2 crore in the first quarter, up 113 per cent year-on-year (YoY), but down 7.7 per cent from the previous quarter's Rs 273.2 crore.
The year-on-year topline growth was primarily driven by an increase in credit card volume and consistent performance of its business spend management platform Zoyer, and client addition with a large user base, the company said in a statement.
"We began the year on a strong footing, achieving a revenue of Rs 2,522.1 million, a significant increase of 112.9 per cent on a YoY basis in Q1FY25. Our Adjusted EBITDA (before ESOP expense) for the said quarter was Rs 255.8 million, a growth of 85.3 per cent on a YoY basis. The growth is largely led by strong demand for Zoyer and Credit card bundled solution," Raj P Narayanam, founder and executive chairman at Zaggle Prepaid Ocean Services, said.
He said the company is focusing on inorganic growth opportunities in spend management space to enhance its leadership position but is also exploring complementary inorganic expansion opportunities.
"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.
"For this fiscal year, we project a revenue growth of 45 per cent to 55 per cent over the previous fiscal year. Additionally, we reaffirm our goal of doubling our revenue within the next two years," Narayanam said.
As of June 2024, Zaggle's employee count is 375.
Shares of Zaggle settled almost flat at Rs 335.05 apiece on the BSE on Tuesday.
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