Fintech co Zaggle’s revenue hits Rs 336 Cr in Q3, net profit up 29% YoY

Hyderabad-based expense management fintech Zaggle reported strong Q3 FY25 results, with revenue surging 68.86% year-on-year (YoY) on the back of an increase in the program fee and gift cards.

Zaggle’s revenue from operations surged to Rs 336.88 crore in Q3 FY25, reflecting an 11.34% increase from Rs 302.55 crore in Q2 FY25. Meanwhile, it earned Rs 199.50 crore in the same quarter last year.

The company’s net profit stood at Rs 19.74 crore in Q3 FY25, a 2.71% decline from Rs 20.29 crore in the preceding quarter. However, compared to the year-ago quarter, it rose 29.69% from Rs 15.22 crore.

Total expenses increased to Rs 314.14 crore in the quarter ended December 2024, up 12% from Rs 280.50 crore in Q2 and 71.59% higher than Rs 183.07 crore in the same quarter last year. Key cost components contributing to the rise included point redemption expenses and incentives.

Employee benefits expense declined 4.46% on a QoQ basis to Rs 17.10 crore but rose 53.36% YoY from Rs 11.15 crore in the same quarter last year.

Cost of point redemption/gift cards jumped 14.73% quarter-on-quarter (QoQ) to Rs 185.79 crore from Rs 161.93 crore in Q2 FY25, marking a 91.35% surge from Rs 97.09 crore in the same quarter last year.

Incentives and cashback saw a 4.96% sequential rise to Rs 82.89 crore, compared to Rs 78.97 crore in Q2 FY25, and a 47.36% increase from Rs 56.25 crore in the same quarter last year.

Zaggle's Q3 also saw corporate restructuring, with the company acquiring a 53.32% stake in Span Across IT Solutions Private Limited, transitioning it from an associate entity to a subsidiary.

“This has been a milestone quarter for us with our highest ever quarterly and nine monthly performance, in terms of revenue, adjusted EBITDA, and PAT," Raj P Narayanam, Founder and Executive Chairman, Zaggle Prepaid Ocean Services Limited, said.

"For FY25, we are confident of achieving a 58-63% growth in our top line. We are also evaluating inorganic growth opportunities to expedite this growth and the discussions are at advanced stages," Narayanam added.