With Investment of INR 7.25 Cr, Zaggle Increases its Stake in Mobileware

The Hyderabad-based spend management solutions provider Zaggle Prepaid Ocean Services Limited has paid INR 15.60 crore to buy a 26% interest in Mobileware Technologies. Additionally, for INR 7.25 crore, Zaggle purchased a 12.34% interest from Mobileware's proprietors, which represents a percentage of the company's post-closing issued and paid-up capital on a fully diluted basis. In India's digital payments ecosystem, mobileware is a key component that supports banks, financial services, NBFCs, and all other financial institutions. Following this investment and acquisition, Zaggle now owns 38.34% of Mobileware Technologies on a fully diluted and post-issue basis.

Enhancing its Stance in Spend Management Sector

According to the company, the move will help it secure its position in the SaaS FinTech industry and boost its position in the Spend Management area. According to a formal statement, Zaggle's integration with Mobileware has already begun to improve its services by giving its customers embedded payment experiences. According to Raj P. Narayanam, founder and executive chairman of Zaggle Prepaid Ocean Services Limited, the investment would allow Zaggle to collaborate on creating cutting-edge solutions for its wide range of clients. Zaggle's goal of providing smooth, integrated payment experiences is well aligned with Mobileware's demonstrated proficiency in developing strong payment infrastructures, especially in UPI and other NPCI-certified solutions. In the third quarter that concluded in December 2024, Zaggle recorded a 29.6% growth in consolidated earnings after tax, reaching INR 19.7 crore, up from INR 15.2 crore the previous year. Through a Qualified Institutional Placement (QIP), the company has raised INR 595 crore, which would be used for strategic acquisitions and to reach a revenue objective of $1 billion.

About Zaggle and Mobileware Technologies

Established in 2011, Zaggle is a prominent participant in the spend management space, providing financial technology solutions such as SaaS-based cost management software and corporate prepaid cards. The company's most recent action is an attempt to capitalise on Mobileware's extensive knowledge of digital payments infrastructure, which includes NPCI-certified products, including UPI, IMPS, AEPS, BBPS, and the exclusive API banking platform TransXT.

For 15 years, Mobileware Technologies, which Satyajit Kanekar co-founded, has been a major force in India's financial industry. The company's innovative digital payment solutions power banks, NBFCs, and businesses. Kanekar was excited about the partnership, saying that Zaggle's investment is a significant step for Mobileware since it would enable the company to scale its technology and reach a wider audience. Through this collaboration, Mobileware will be able to improve its payment infrastructure, spur innovation, and establish new benchmarks for effectiveness, security, and customer satisfaction.