Zaggle's B2B Fintech Shares Surge Following HDFC ERGO Order
Shares of fintech SaaS startup Zaggle surged as much as 6.2% during intraday trading, touching INR 372.70 on the BSE on September 10. A day after announcing its order from HDFC ERGO General Insurance Company, the shares concluded the session at INR 367.10, marking a 4.6% gain. Zaggle's market capitalisation stood at INR 4,500 Cr by the end of the trading day.
In an exchange filing, Zaggle disclosed a service agreement with HDFC ERGO to supply the Zaggle Propel reward platform until August 31, 2025. The Zaggle Propel platform aids companies in rewarding employees and channel partners, offering features like customisable programmes, peer-to-peer rewards, and real-time visibility.
Founded in 2011 by Raj Phani, this Hyderabad-based startup specializes in spend management and corporate employee benefits, automating accounts and issuing prepaid cards for incentives. Since its stock market debut last September, its shares have gained 68% year to date.
Zaggle has recently onboarded clients such as Blue Star, Hero MotoCorp, and Visa. Recently, it inked agreements with Blue Star Ltd and Hero MotoCorp to provide its employee expense management offerings. The startup also secured a $20 Mn contract from Visa last year for prepaid forex cards.
Last month, Zaggle partnered with the Open Network for Digital Commerce (ONDC) to issue prepaid payment instruments. Financially, Zaggle's consolidated profit after tax (PAT) escalated by 716% year-on-year to INR 16.73 Cr in Q1 FY25, while operating revenue rose 113% to INR 252.2 Cr.
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