Zaggle to Provide Expense Management Solutions to Quick Commerce Giant Zepto

Listed fintech SaaS company Zaggle has entered into a strategic agreement with KiranaKart Technologies, the parent company of quick commerce platform Zepto, to provide its expense management and employee benefits solutions.

According to an exchange filing, Zaggle will implement its "Zaggle Zoyer Petty Cash" expense management platform and "Zaggle Save" employee benefits platform for Zepto's operations. The Zoyer Petty Cash platform offers businesses automated expense management capabilities, including real-time tracking, spending controls, and transparency features to prevent cash leakage. Zaggle Save helps employees optimize tax savings through flexible benefit plans while enabling employers to manage employee benefits like meal and fuel allowances through a single card.

The agreement significantly enhances Zaggle's client portfolio, bringing aboard one of India's prominent quick commerce players. This development follows Zaggle's recent qualified institutional placement (QIP) last month, in which the company raised INR 594.84 crore by issuing 1.13 crore equity shares to qualified institutional buyers.

The company, founded in 2011 by Raj Narayanam, has pursued growth opportunities. In September 2024, it acquired a 26% stake in Mobileware Technologies for INR 15.6 crore, and reports suggest the company is targeting three additional acquisitions and investments by March 2025.

Zaggle's financial performance has shown strong momentum. In Q2 FY25, its consolidated net profit surged 167.67% to INR 20.29 crore, compared to INR 7.58 crore in the same period last year. The company's operating revenue also witnessed substantial growth, increasing 64.21% to INR 302.55 crore from INR 184.24 crore in Q2 FY24.

The company's stock closed at INR 532.25 on the BSE on Wednesday, January 8, down 2.47% from the previous session.