Zaggle’s profit surges as digital payments rise

Fintech firm Zaggle Prepaid Ocean Services Pvt. Ltd. said the rapid adoption of digital payments in enterprises during COVID-19 time helped grow its gross turnover value (GTV) by 4.5 times in FY21 from the previous year. We were profitable in FY20. But our profit in FY21 increased 14 times. This was because we introduced a lot of digital products at the right time,” said Raj N, founder Zaggle.

Encouraged by the performance, the firm is planning to double its business during this year and is planning to enter into new markets abroad.

“Having achieved GTV of ₹14,500 crore, we have now decided to foray into credit cards for SMEs and will lend them based on their cash flows. This will make a big difference. We will also introduce Business Finance Manager (BFM) product this year,” he said.

These two products, targeted at SME owners and top executives of such firms respectively, will be introduced by anther group company called Zikzuk Technologies Pvt Ltd. The fintech has tied up with 50-60 NBFC and banks like ICICI, IndusInd and Yes Bank to facilitate credit, he said.

“Later on, based on business volume, we will build up our own book,” he added.

Zaggle has also announced plans to set up offices in London and the U.S. this year after finding success in Canada.

“We will put up our product management offices there and will then sell our employee benefit & expense management software and channel incentives software through our partnerships. We will also try to pitch for pre-paid cards in those markets,” he said adding these two new offices should be operational in 6 to 8 months.

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