Zaggle Jumps 20% To Hit Upper Circuit After Q3 Profit Grows 10X YoY

Shares of fintech SaaS startup Zaggle jumped 20% on Wednesday (February 7) and were locked in its upper circuit at INR 278.2 a day after it reported robust Q3 FY24 earnings.

With this, the startup’s shares also hit a new all-time high.

On Tuesday, Zaggle reported more than a 10X year-on-year (YoY) jump in its profit after tax (PAT) to INR 15.2 Cr in the December quarter. Operating revenue increased 35.1% YoY to INR 199.5 Cr in the quarter.

Even on a quarter-on-quarter (QoQ) basis, Zaggle’s PAT doubled from INR 7.5 Cr and operating revenue increased 8.3% from INR 184.2 Cr in Q2 FY24.

The startup’s growth was helped by diversification in its product portfolio, the launch of commercial credit card offerings, and certain cost-cutting measures.

While its total expenses increased 26.6% YoY and 4.6% QoQ to INR 183.1 Cr in the reported quarter, it managed to cut costs on multiple fronts, including employee benefits and cost of point redemption or gift cards, on a QoQ basis.

Founded in 2011, Zaggle provides a spend management platform for businesses, along with an employee benefits platform. The startup’s shares listed on the Indian bourses in September last year at INR 164. Its IPO was oversubscribed 12.57X.

So far, the startup’s shares have gained almost 70% on the BSE since its listing. Zaggle’s current market cap stands at INR 3,396.73 Cr.

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