Zaggle raises FY25 revenue growth guidance to 58-63%, net profit up 33% in Q3FY25

Zaggle Prepaid Ocean Services reported a 69% year-on-year surge in revenue, reaching ₹336.4 crore in Q3FY25. Net profit grew to ₹20.2 crore during the quarter, marking a 33% year-on-year increase.

The revenue surge was driven by a 54% increase in programme fees from its expanded prepaid and credit card portfolio and an 86% jump in Propel revenue, fuelled by heightened festive season spending.

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In a post-earnings investor call,  founder Raj P Narayanam highlighted the role of artificial intelligence (AI)-driven automation in improving efficiency. Razbot, Zaggle’s AI chatbot, successfully handled up to 60% of customer queries without human intervention. 

“Zaggle plans to expand the implementation of this chatbot across its suite of products and improve efficiency,” he said. 

The company upped its guidance for topline growth in FY25 to 58-63%. “As we rapidly grow our topline, we continue to focus on protecting and growing our margins over time,”  Narayanam said. 

“Going forward with our platform approach we anticipate growth rapidly on the back of new client additions along with much higher cross-sell in our existing clients,” Zaggle CEO and MD Avinash Godkhindi said in the investor call. 

The company expects programme fees would be the fastest-growing vertical over the next two to three years.

Responding to an analyst’s query regarding the impact of the Reserve Bank of India’s recent announcement allowing prepaid cards to make UPI payments via third party applications, Godkhindi said that it “opens up engagement on our app.” While he acknowledged that there were still steps the company had to take to qualify, the company was in the process of getting there. 

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Founded in 2011, Zaggle provides SaaS-based fintech solutions for businesses across expense management, payments, and rewards. The company serves multiple sectors, including BFSI, technology, healthcare, manufacturing, and FMCG. The fintech company has issued over 50 million prepaid cards through its banking partners and has served more than 3.16 million users as of 31 December 2024.