Ashish Kacholia portfolio: Zaggle soars 14% on heavy volumes, hits new high

Zaggle Prepaid Ocean Services (Zaggle) share price today hit a record high of Rs 418 as it surged 14 per cent on the BSE in Wednesday's intraday trade, aided by heavy volumes. The stock price of the SaaS fintech player, which provides spends management products and solutions, surpassed its previous high of Rs 394.60 touched on August 19. It is trading at its highest level since its listing on September 22, 2023.

At 11:46 AM, Zaggle share price was trading 12 per cent higher at Rs 411.40 as compared to 0.1 per cent rise in the BSE Sensex index. Average trading volume on the counter jumped over five-fold today with a combined 7.8 million equity shares, representing 6.4 per cent of total equity of Zaggle, changing hands on the NSE and BSE.

Ace investor Ashish Kacholia held 2.90 million equity shares or 2.37 per cent stake in Zaggle at the end of the June 2024 quarter, shareholding pattern data shows.

In the past two days, the stock of the information technology (IT) company has soared 19 per cent after the company entered into service agreement with HDFC Ergo General Insurance Company Limited (HDFC Ergo). The company would provide HDFC Ergo with the Zaggle Propel reward platform (Channel rewards and recognition). This agreement shall continue till August 31, 2025, unless terminated in terms provided there under, the company said in an exchange filing.

That apart, on September 4, Zaggle Prepaid informed the exchanges that the company has entered into a one-year agreement with Blue Star. Here, Zaggle would provide Blue Star with its Zaggle Save (Employee expense management & benefits) services.

Zaggle is a leading player in spend management, and operates in the business-to-business-to-customer segment and is amongst a small number of uniquely positioned players with a diversified offering of financial technology products and services. Zaggle is one of the largest numbers of issued prepaid cards in India in partnership with its banking partners. Additionally, Zaggle has a diversified portfolio of SaaS (Software as a Service) products; including tax and payroll software, and a wide touch point reach.

Zaggle's network of corporate customers covers the banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure and automobile industries.

For this fiscal year i.e. 2024-25 (FY25), the management projects a revenue growth of 45 per cent to 55 per cent over the previous fiscal year (FY24). Additionally, the management has reaffirmed its goal of doubling the company's revenue within the next two years and expects adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) to hold steady around current levels.

"Zaggle is uniquely positioned to leverage the burgeoning Indian SaaS fintech landscape, driven by the increasing adoption of digital payments and the shift towards a cashless economy.  As the demand for SaaS solutions grow, particularly in the context of digital transformation, Zaggle's offerings are likely to attract significant interest from enterprises aiming to optimise their financial operations," the company had said in its FY24 annual report.

The company, it added, believes that the annual amount of spending for corporates is set to increase in the coming years as the economy grows.

As the annual amount of spending increases and market consolidation of spends through Zaggle's platform accelerates, the management anticipates that the funds disbursed through the company's platform will increase, and, in turn, the amount spent by such users, will result in better growth of the company's business and operations.