Shares of Zaggle Prepaid Ocean Services Limited moved higher on Friday after the company announced a strategic agreement with Blue Star Limited to provide employee expense management and benefits solutions.
The fintech firm informed the exchanges that it has entered into a three-year agreement with Blue Star to deploy its Zaggle Save platform, which offers employee expense management and benefits solutions designed to streamline corporate spending and reimbursement processes.
Following the announcement, Zaggle Prepaid shares gained more than 3% in early trade, reflecting positive investor sentiment toward the company’s growing enterprise partnerships.
According to the company’s regulatory filing under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Zaggle will provide its Zaggle Save – Employee Expense Management & Benefits platform to Blue Star for a period of three years. The agreement is with a domestic entity and is structured as a services contract.
The company clarified that no promoter or promoter group entities have any interest in Blue Star Limited, and the agreement does not fall under related-party transactions.
Zaggle Prepaid Q3 Results
The company posted revenue of ₹336 crore in Q3 FY25, marking a 68.6% year-on-year increase compared with the same quarter last year.
Program fees increased 54% YoY during the quarter, while revenue from the Propel platform surged 87% YoY.
Despite the strong revenue growth, operating expenses rose significantly during the quarter. Total operating expenses increased 72% YoY to ₹308 crore.
Zaggle reported EBITDA of ₹29 crore in Q3 FY25, representing a 45% year-on-year increase. However, the EBITDA margin declined to 9.4%, reflecting the faster growth in expenses compared with revenue.
Net profit for the quarter stood at ₹20 crore, registering a 33% YoY increase.