What do Hardik Pandya and Jasprit Bumrah have in common? Apart from playing for the Mumbai Indians, they are both brand ambassadors for a swanky fintech company whose stock has run up by 75% since its IPO in September’23 - Zaggle Prepaid Ocean Services!
Zaggle began in 2011 as the solution to a problem that corporate India didn’t know it had - the process to receive rewards, remuneration and reimbursements for employees at big corporations was a cumbersome one, filled with paper invoices and no organisation whatsoever.
The solution that the company came up with opened opportunities like never before, making Zaggle a market leader in a niche industry - but what exactly did it do?
The Solution
Zaggle launched a pre-paid card (backed by an app) wherein the employees could spend money loaded by corporates on their business trips, get reimbursements and receive reward points (shopping vouchers and discounts at restaurants) on a job well done.
This caught on so well that Zaggle onboarded more than 200 clients within the first 3 years and is now the leading issuer of prepaid cards in India at a 16% market share! The company then launched a few other services under its software:
Now standing at more than 2,400 clients with reputed names like Tata Steel and ITC, the company has shown immense promise, displaying an astounding growth of 10x in revenue and 8x in net profits over the last 4 years!
You’d think that this is the extent to which Zaggle could operate with such a distinct product, but in true Zaggle spirit, it has recently identified new ways to expand its business horizons.
How Did It Expand?
The company’s ability to innovate for unique problems and retain customers for years has resulted in it signing some new deals:
These new partnerships can bring in almost Rs. 450 crore in revenues over the next few years (65% of 9MFY24 revenue) from just the initial order, and Zaggle’s ability to retain clients will make these exciting new ventures a part of its family!
Furthermore, all 3 of the above unique solutions were devised by Zaggle first, making it a first mover in a market that didn’t exist but can be further used to expand its business (the fleet cash management product alone opens up a Rs. 73,000 crore market)!
Future Growth
With Zaggle being the prime choice for corporate India’s growing size and need for the service (this niche industry’s penetration levels being at 10% of the total Indian workforce now), Zaggle has the opportunity to leverage its leadership, with an expected 35% CAGR growth in revenues over the next 3 years!
Furthermore, it has devised a strategic utilisation of the Rs. 400 crore it raised in its IPO, with 3 specific needs kept in mind:
This unique IPO may have missed your radar, but this company is literally creating markets with its innovative products and should be a must-watch in your lists as far as new-age IPOs go!