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SaaS firm Zaggle’s revenue grows 50% in FY23, profits shrink to 23 Cr

  • May 6, 2024
  • By Team TheKredible
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Mumbai headquartered SaaS platform Zaggle posted an almost 50% rise in scale to Rs 554.6 crore in FY23 as compared to its preceding fiscal’s Rs 371 crore.

Its revenue from operations contributed over Rs 553 crore, a 49% growth from FY22’s Rs 371 crore.

The 2011 founded firm is a B2B fintech company that offers financial solutions and products to businesses for their working capital. It offers a combined solution for spend management through prepaid cards and employee management. Its features include expense management, real-time reporting, and rewards.

It additionally covers areas like employee benefits and corporate gifting and has partnerships with several banks and financial institutions.

The company spent over 61% of its overall expenses for the same year on materials. With over 8% being spent of employee benefits and close to 4% on promotions, the total expenditure of Zaggle was pushed up 63% to Rs 522.9 in FY23 as compared to FY22’s Rs 320 crore.

The Phani Raj Narayanam led firm has raked in over Rs 160 crore over 4 funding rounds. It last secured Rs 98 crore in its pre-IPO round led by ValueQuest in 2023.

A couple of months prior, it raised Rs 50 crore in a debt round from Vivriti Asset Management.

While founder Phani Raj Narayanam holds over half the company’s shares, Zuzu Software Services and Ventureast also own a significant number of shares in Zaggle.

As for profits, the firm witnessed a 45% shrink to Rs 22.9 crore from the approximate of Rs 42 crore incurred in its preceding fiscal. Its current EBITDA and ROCE dropped to 8.87% and 36.73% respectively.