Zaggle Inks Agreement To Provide Zepto With SaaS Solutions

Nitin Konde, Varun Bhardwaj

10 Jan 2025 — 3 min read

Zaggle Partners with Zepto to Deliver SaaS Solutions

The parent firm of Zepto, a leading player in fast commerce, KiranaKart Technologies, has agreed to purchase solutions from the listed fintech SaaS business Zaggle. According to an exchange filing, Zaggle will give Zepto access to its employee benefits platform, Zaggle Save, and spending management tool, "Zaggle Zoyer Petty Cash." This is to let the exchange know that KiranaKart Technologies Private Limited and Zaggle Prepaid Ocean Services Limited (Zaggle) have signed a contract, according to the fintech SaaS startup. Businesses can handle little expenses more efficiently and automatically with the aid of Zaggle Zoyer Petty Cash. According to the startup, this software helps businesses with real-time tracking, cash leak prevention, pre-checking expenditures, and high control and transparency. Zaggle Save, on the other hand, is an employee spending management program that offers customisable benefit plans and helps employees save taxes. Additionally, the program assists the business in managing employee perks with a single card, including fuel cards and food allowances.

The Deal will Further Boost Zaggle’s Order Book

The customer service contract with Zepto will increase Zaggle's order volume and give it access to a significant domestic player. This comes shortly after Zaggle raised INR 594.84 Cr last month through qualified institutional placement (QIP). To qualifying institutional buyers, the financial SaaS platform issued 1.13 Cr equity shares. According to a recent media report, the corporation plans to make three investments and acquisitions by March of this year. Notably, Zaggle paid INR 15.6 Cr in September 2024 to purchase a 26% share in Mobileware Technologies.

About Zaggle and its Current Financial Dynamics

Zaggle, which Raj Narayanam founded in 2011, offers a platform for corporate employee benefits and spend management. Its products assist companies in issuing prepaid cards and automating their accounts. Payroll and tax applications are also included in its SaaS product line. In the meantime, Zaggle's consolidated net profit increased from INR 7.58 Cr in the previous year to INR 20.29 Cr in the second quarter (Q2) of the fiscal year 2024–25 (FY25), a 167.67% increase. From INR 184.24 Cr in Q2 FY24 to INR 302.55 Cr in the reviewed quarter, operating revenue increased 64.21%.

Zepto Going Public

Zepto is expected to submit its initial public offering (IPO) draft papers in March or April of this year. The delivery company has already obtained the necessary authorisations to relocate its headquarters from Singapore to India.

The business stated that the IPO's specifics are still being finalised and that it has scheduled a board meeting for January 19 to talk about the size of the IPO, the selection of independent directors, which bankers to hire, and other specifics.

Notably, the National Company Law Tribunal (NCLT) is set to hear the case on January 17 even though Singaporean officials have approved the move. After food delivery services Zomato (Blinkit) and Swiggy (Instamart), parent firms of listed competitors, Zepto will become the first rapid commerce start-up to go public if all goes as planned by April.