Prepaid Gift Cards is a novel concept in India. A person can load a gift card with some credit, and gift it to a desired person. This gift card can then be redeemed at various outlets depending on the nature of the subscriptions on the gift card. This solves the problem of having to choose a gift for a person and it provides the person receiving a gift with a wide variety of choices.
India has an affinity to the prepaid model; you pay for what you’re going to use. It is in line with the financial mentality of most of the country and the concept of prepaid cards has also been adopted by the masses. Vendors such as Café Coffee Day and Shoppers Stop have enjoyed a fair chunk of revenue based on the sales of the Gift Cards.
Zaggle is a venture that aims to capitalize on the gifting industry through the prepaid services. It is backed by Argonaut Private Equity, Ventureast and Mr. Phani N Raj. What is unique about this venture is that it targets the corporate gifting culture. The corporate industry has a profound gifting culture which is used as reward and recognition for the work of subordinates. Mr. Phani Raj, an Indian a serial entrepreneur based in Hyderabad, is a pioneer in the industry of corporate gifting through the company founded by him eYantra Industry Ltd., which has been a strong player in the corporate gifting space for the past 12 years.
With this experience and the support of a strong management team, Zaggle.in is quite an emerging force in this space. Right from vouchers to its flagship product, the Zaggle Super Card, it has a comprehensive list of prepaid gifting solutions for various occasions. Along with this, Zaggle has over 40 popular merchant subscribers across diverse categories, which gives the user with a lot to choose from. Furthermore, this list of subscribers is geographically sorted, so as to provide relevant places to redeem the vouchers.
This successful formula has translated into revenue of 1 million USD in under a year and an Industry New Business Recognition Award 2012 in the 3rd Annual Gift and Prepaid Awards, India 2012.
A Clever Approach to B to C
Through their association with the corporate industry, Zaggle comes across as a B2B company. But at the end of the day, it is a user who redeems the coupons with a merchant, making Zaggle a B 2B company that eventually functions as a B2C company.
Avinash Godkhindi further added that Zaggle aims to achieve revenue of 100cr INR in the next 2 years. Going by the initial impressions and the team at work, Zaggle seems to be well on track.
Baffled over gifting? Try Zaggle.
-Raghu Mohan
