Zaggle Prepaid rises 5% on entering 5-year contract with Mastercard

Zaggle Prepaid Ocean Services shares gained 5.2 per cent on BSE, logging an intraday high at ₹373.4 per share. At 10:25 AM, Zaggle Prepaid's share price was trading 2.56 per cent higher at ₹364 per share on BSE. In comparison, the BSE Sensex was down 0.34 per cent at 81,879.

 

The market capitalisation of the company stood at ₹4,886.85 crore. The 52-week high of the stock was at ₹597 per share, and the 52-week low was at ₹299.

 

In one year, Zaggle Prepaid's shares have slipped 20 per cent, as compared to the BSE Sensex’s fall of 3 per cent. 

 

Why were Zaggle Prepaid shares in demand?

The buying on the counter came after the company entered into an agreement with Mastercard Asia/Pacific Pte. Ltd (Mastercard).

 

Under the contract, Mastercard will incentivise Zaggle to launch and promote co-branded domestic prepaid cards on the Mastercard network.

 

The agreement shall come into force with effect from September 22, 2025, and shall expire on September 30, 2030. The value for the transactions was not mentioned. 

 

That apart, in July, Zaggle Prepaid Ocean Services Ltd acquired a 100 per cent stake in fintech firm Rio Money for ₹22 crore in a strategic move to enter the high-growth consumer credit card segment via UPI.

 

With this acquisition, Zaggle, a major player in corporate spend management and commercial cards, has forayed into the rapidly expanding retail credit payments market, the company said in a statement. 

The acquisition forms part of Zaggle's broader strategy to invest proceeds from its ₹595 crore qualified institutional placement (QIP) towards growth-focused, accretive acquisitions.

 

Founded in 2023, Rio Money offers a cutting-edge UPI app that seamlessly integrates credit into UPI transactions.

 

Riya Bhattacharya, Founder and CEO of Rio Money, said, "We're excited to join hands with Zaggle, a powerhouse in spend management. This acquisition supercharges our mission to make credit effortlessly accessible through UPI.

 

Incorporated in 2011, Zaggle is a uniquely positioned player in the FinTech industry, offering a diversified suite of products and services. The company is a recognised leader in spend management, having issued over 50 million prepaid cards in partnership with leading banks and serving a user base of more than 3 million.

 

Zaggle's portfolio features a range of Saas-based solutions, including software for expense management, payments, and rewards, designed to address a broad spectrum of enterprise and user touchpoints.