Zaggle Prepaid Ocean Services Ltd Management Discussions

The global economy remained resilient through FY25, with real GDP growth estimated at 2.8%, outperforming earlier projections despite escalating global headwinds. This strength was supported by a broad-based rebound in trade during 2024, initial monetary easing in major economies, and the emergence of new investment drivers, particularly in Asia.

However, the momentum was tested in early 2025 as the global environment became more volatile. A sharp rise in trade restrictions, coupled with rising policy uncertainty, weighed on investor confidence and disrupted supply chains. The surge in tariffs-particularly between the United States and key trading partners-led to an uptick in inflation expectations and triggered turbulence in global equity and bond

markets. Although partial tariff rollbacks and pauses were introduced mid-year, financial conditions remained tighter overall relative to late 2024.

Inflation trends diverged across regions. While global inflation moderated from 2023 levels, core inflation remained sticky, especially in advanced economies, due to wage pressures and resilient service-sector pricing. In EMDEs, inflation readings were more volatile but eased modestly due to softer demand for traded goods. On a GDP-weighted basis, global inflation is projected to average 2.9% in 2025, slightly above target.

Commodity prices declined sharply, driven by weak global demand and increased oil production from OPEC+. Energy prices alone are forecast to

drop by 15% in 2025, while metals saw mixed trends, with aluminium prices spiking temporarily in response to trade disruptions.

EMDEs faced renewed external stress during FY25, as trade uncertainty triggered capital outflows, currency pressures, and widening sovereign spreads, especially in economies with elevated external debt. Although financial markets stabilised following mid-year policy adjustments, borrowing conditions remained challenging. Many EMDE central banks adopted a cautious monetary stance, balancing inflation control with the need to preserve financial stability.

Overall, FY25 was marked by resilience amid volatility, with growth sustained despite significant disruptions in trade, inflation, and capital markets.

OUTLOOK

Global growth is projected to rise marginally to 2.3% in 2025 and 2.6% in 2026, supported by gradual normalisation in trade flows and easing policy uncertainty. However, growth is expected to remain well below pre-pandemic averages, with output materially below earlier forecasts.

While inflation is forecast to decline toward target levels by 2027, upside risks persist due to lingering supply shocks, volatile commodity markets, and potential currency depreciations. The global financial outlook remains cautious, with developing economies particularly exposed to financing risks if global capital conditions tighten further.

Strengthening global recovery will depend on multilateral cooperation to reduce trade frictions, improve debt sustainability, and support vulnerable EMDEs. For sustained progress, structural reforms in these economies, focused on human capital, labour markets, and institutional capacity, remain essential.

India continued to lead the global economy, emerging once again as the fastest-growing major economy with a real GDP growth rate of 6.5% in FY 25. This momentum was achieved despite global economic headwinds and is a reflection of Indias resilient domestic demand, robust external performance, and ongoing structural reforms.

Inflation moderated sharply during the year. Headline CPI inflation fell to 2.82% in May 2025, the lowest in over six years, while food inflation eased to 0.99%, supported by improved agricultural output and efficient supply-side management. This price stability created room for sustained consumption and supported overall economic sentiment.

Indias export sector achieved a historic high, with total exports reaching USD 824.9 billion. Services exports surged by 13.6% year-on-year, hitting USD 387.5 billion, while merchandise (nonpetroleum) exports remained strong at USD 374.1 billion. This helped limit the Current Account Deficit to just 0.6% of GDP, with the final quarter of FY25 posting a surplus of USD 13.5 billion (1.3% of GDP).

The countrys foreign exchange reserves increased to USD 697.9 billion, offering a comfortable cushion of over 11 months of import cover.

On the investment front, FDI inflows grew by 14% to USD 81 billion, placing India among the top three global FDI destinations. Sectors like IT, hardware, trading, financial services, and manufacturing attracted the bulk of inflows.

Indias capital markets also reflected buoyant investor confidence. The country accounted for 30% of global IPO listings, while IPO proceeds nearly tripled from the previous year. The retail investor base expanded to 132 million accounts, signalling the deepening of financial participation and trust in longterm economic growth.

These outcomes were reinforced by the governments strategic and forward-looking policy framework. Key initiatives included the PM GatiShakti

National Master Plan for multimodal infrastructure, the Production Linked Incentive (PLI) Scheme across core manufacturing sectors, and the National Industrial Corridor Programme aimed at accelerating industrial connectivity. Programs like Startup India, Digital India, and financial inclusion platforms continued to nurture innovation and entrepreneurship. Regulatory simplification through the National Single Window System (NSWS), India Industrial Land Bank, Project Monitoring Group (PMG), and liberalised FDI norms helped streamline the business environment.

The unification of markets through the Goods and Services Tax (GST) and steady progress on reducing compliance burdens further improved the ease of doing business. With a rising focus on skilling, digital public infrastructure, and innovation-led growth, India demonstrated not just economic resilience but long-term structural strength.

OUTLOOK

Indias economic outlook remains positive and well-supported by fundamentals. According to the World Banks January 2025 Global Economic Prospects report, the economy is projected to grow at 6.7% in both FY26 and FY27, far ahead of most global and regional peers. The forecast reflects continued expansion in services and manufacturing, stable inflation within the RBIs comfort range, and steady capital inflows. As Chinas growth moderates to around 4%, Indias rise is not just statistical-it signals a structural shift in global economic leadership. With supportive governance, an empowered workforce, and reform continuity, India is poised to shape the next chapter of global growth.

Source: https://www.pib.gov.in/PressNote-

Details.aspx?Noteld=154840&Moduleld=3

https://static.pib.gov.in/WriteReadData/

specificdocs/documents/2025/jan/

doc2025118487001.pdf

FINTECH INDUSTRY

India has established itself as one of the worlds most competitive FinTech hubs, with a FinTech adoption rate of 87%, significantly higher than the global average of 64%. Compared to established FinTech ecosystems like the UK, US, China, and Singapore, India stands out due to its strong regulatory support, favourable government policies, robust funding environment, technological readiness, and entrepreneurial energy.

EVOLVING ECOSYSTEM AND MARKET OPPORTUNITIES

The Indian FinTech ecosystem is rapidly evolving. New players are continuously entering the space, expanding market offerings, while existing companies are diversifying their services. The sector offers significant growth potential across both urban and rural regions, with FinTech solutions playing an increasingly important role in financial inclusion.

CURRENT MARKET SIZE AND GROWTH PROJECTIONS

As of CY2024E, the Indian FinTech market was valued at approximately ?9,248.91 billion, and is expected to grow at a CAGR of 29.23%, reaching ?43,080.58 billion by CY2030E. This rapid expansion is driven by rising income levels, increasing digital awareness, and widespread access to digital infrastructure.

SEGMENT OUTLOOK: DIGITAL LENDING ON THE RISE

Among various FinTech segments, digital lending is expected to become the largest contributor to FinTech

revenues by 2030. Key enablers include government-led financial inclusion programs, the increasing penetration of the internet and smartphones, and the development of Digital Public Infrastructure, which has helped FinTech companies onboard users efficiently and securely.

TECHNOLOGY-DRIVEN INNOVATION AND EMERGING TRENDS

The future of FinTech innovation in India is closely tied to emerging technologies such as artificial intelligence (Al), machine learning (ML), blockchain, and other digital tools that enhance efficiency, personalisation, and inclusion. These advancements will support broader access to financial products while improving fraud detection, credit assessment, and operational scalability.

ROLE IN VIKSIT BHARAT 2047 VISION

FinTech companies are central to Indias Viksit Bharat 2047 mission. By simplifying access to credit, savings, insurance, and investment tools, FinTechs help address challenges such as unemployment, credit gaps, financial illiteracy, and digital exclusion. Their

ability to deliver services at scale and lower costs positions them as powerful drivers of inclusive economic growth.

FINANCIAL LITERACY AND INCLUSION

Improving financial and digital literacy remains crucial for maximising the impact of FinTech. Companies in the sector are uniquely positioned to lead innovative awareness campaigns and community-based outreach programs. Targeted efforts in underserved regions can bridge knowledge gaps and empower individuals to access and benefit from financial tools and government schemes.

CONCLUSION: INNOVATION AS A CATALYST FOR GROWTH

By turning structural and operational challenges into opportunities through technology-led innovation, India can unlock its full FinTech potential. A balanced approach combining strong governance, inclusive design, and proactive literacy efforts will be key to realising Indias vision of becoming a developed and financially empowered nation by 2047

DIGITAL PAYMENTS SECTOR

Indias digital payments industry has emerged as one of the most dynamic segments of the economy over the past decade. Its expansion has been fuelled by technological innovation, proactive government policies, and financial inclusion efforts targeting the unbanked and underbanked population.

The sector plays a central role in Indias journey toward a digitally empowered and cashless economy.

According to the RBI Annual Report 2024-25, the industry registered robust growth:

• Digital transaction volume surged by 34.8%.

• Transaction value grew by 17.9% over the previous year.

These numbers reflect strong consumer adoption, merchant integration, and greater digital trust in financial transactions across urban and rural India.

DIGITAL PAYMENTS INDEX (DPI)

The Digital Payments Index (DPI), constructed by the RBI in 2021, serves as a composite indicator of the degree of digitisation of payments across the country. It captures trends in:

• Payment enablers and infrastructure,

• Consumer adoption,

• Transaction volume and value.

The DPI reflects broad-based adoption and deepening penetration of digital payments, showcasing Indias successful transition toward seamless, secure, and accessible payment platforms that empower individuals, small businesses, and merchants alike.

UPI CIRCLE: DELEGATED PAYMENTS FOR BROADER INCLUSION

In a significant move to enhance digital inclusion, the Reserve Bank of India introduced Delegated Payments, popularly called UPI Circle, in August 2024. This feature allows a primary UPI user to authorise another individual- such as a family member, domestic help, or staff-to initiate transactions from their UPl-linked account. Notably, the secondary user does not require a UPl- linked bank account, which simplifies digital access for those outside the formal banking system.

This move is expected to boost digital transaction penetration, particularly among households and small businesses, without the overhead of creating new accounts for each user.

EXPANDED UPI ACCESS FOR PPI USERS

The RBI Annual Report 2024-25 also introduced a key measure for greater interoperability by allowing Prepaid Payment Instrument (PPI) users to access third-party UPI applications. Previously, PPI holders were restricted to apps issued by their wallet provider. This change significantly enhances flexibility and user convenience, promoting broader UPI ecosystem adoption.

INTEROPERABLE CASH DEPOSITS (UPI-ICD)

In another advancement, the Interoperable Cash Deposit (UPI-ICD) facility was launched in June 2024.

This feature enables customers of any participating bank to deposit cash at any banks cash recycler or deposit machine that supports UPI-ICD, without needing a debit or ATM card.

The UPI-ICD service makes cash management easier and more accessible, particularly for semi-urban and rural users, while reinforcing the digital backbone of Indias banking system.

ELECTRONIC TOLL COLLECTION (ETC)

The Electronic Toll Collection (ETC) system continues to transform toll and parking payments. Under the National Electronic Toll Collection (NETC) framework (linked to bank accounts), transaction volumes rose from 1,629 lakh in FY 2023-24 to 1,668 lakh in FY 2024-25.

This reflects broader adoption of digital toll solutions but also highlights a potential reduction in high-value commercial vehicle transactions or a shift in usage trends.

GROWTH IN PAYMENTS INFRASTRUCTURE(POS TERMINALS AND QR CODES)

The Payments Infrastructure Development Fund (PIDF) scheme played a pivotal role in deepening digital payment acceptance, particularly in Tier III to Tier VI centres. According to the RBI Annual Report 2024-25:

• UPI QR codes witnessed explosive growth of 91.5%, increasing to 65.8 crore.

• PoS terminal installations rose by 24.7%, reaching 1.1 crore as of March 31,2025.

These gains underscore the rapid expansion of merchant acceptance infrastructure, helping bridge the urban- rural digital divide.

Source: https://www.fortuneindia.com/

personal-finance/banking/rbi-annual-report-

202425-upi-expands-its-universe-with-cir-

cles-global-links-and-credit-access/123546

https://www.fortuneindia.com/personal-fi-

nance/banking/rbi-annual-report-202425-

upi-expands-its-universe-with-circles-global-

links-and-credit-access/123546

RBI Annual Report 2024-25

https://worldline.com/content/dam/worldline/

local/en-in/documents/main-page11111/World-

line-lndia-Digital-Payments-Report-2H-2024.

pdf

OVERVIEW OF CARDS

Indias payment and settlement systems demonstrated sustained momentum in FY2024-25, recording a 17.3% increase in transaction value, compared to 15.8% in FY2023-24, largely driven by an increase in large-value payments via RTGS. In volume terms, the systems grew by 34.8%, building on the previous years 44% growth.

PREPAID PAYMENT INSTRUMENTS (PPIS)

The growth of Indias prepaid card market is being driven by rising digital adoption, supportive government policies, and enablement of usage on third party UPI apps and through the UPI circle framework, creates a dynamic landscape for innovation. Categories catering to travel, meal, gift and payroll have seen an increased traction especially in the corporate sector which is leveraging prepaid cards for employee benefits, rewards and expense management.

CREDIT CARDS: GROWTH IN ADOPTION AND USAGE

Indias credit card ecosystem saw robust growth:

• Transaction value grew from ?14.3 lakh crore (FY23) -??18.3 lakh crore (FY24) ¦* ?21.2 lakh crore (FY25).

• Credit cards in circulation rose from 29,145 lakh (FY23) ¦* 35,610 lakh (FY24) ¦* 47,741 lakh (FY25).

This reflects increasing preference for digital and cashless payments, as well as the mainstreaming of credit-based consumer finance.

Source: RBI Annual Report 2024-25

FOREX CARD MARKET

The Indian Forex Card Market was valued at USD 194.96 billion in CY2024E, projected to reach USD 418.34 billion by CY2030E, growing at a CAGR of 13.57%.

Key growth drivers include:

• Surge in international travel, cross- border e-commerce, and preference for digital, mobile-based foreign exchange solutions.

• Expansion opportunities in emerging markets, driven by rising smartphone usage and demand for prepaid/virtual forex cards.

Forex cards offer convenience, security, and cost-efficiency, making them a preferred option for both tourists and international business travellers.

GIFT CARDS MARKET

Indias gift card market is booming:

• Expected to grow by 16.6% YoY to USD 10.45 billion in 2025.

• From USD 8.96 billion in 2024, the market is forecast to reach USD 18.03 billion by 2029, at a CAGR of 14.6%.

Growth drivers:

• Digital adoption, e-commerce, regulatory clarity, and corporate usage for incentives and promotions.

• Rise in e-gift cards, loyalty integration, and personalised gifting solutions.

Corporate sector adoption-especially

in IT, retail, and BFSI-has fuelled usage

for employee rewards and customer

engagement.

Source: BusinessWire, ResearchAndMarkets.com

INTERCHANGE FEES: CARD AND UPI TRANSACTIONS

Interchange fees are charges paid by merchants (via their banks) to card issuers or payment networks (like Visa, Mastercard and Rupay) to process electronic transactions.

• For credit card payments, the average interchange fee is around 2% of the transaction value.

• Debit card transactions typically attract lower interchange fees.

• For UPI transactions above ?2,000 using PPIs (e.g., wallets), an interchange fee of up to 1.1% is applied, paid by merchants, not consumers.

BHARAT CONNECT (FORMERLY BHARAT BILL PAYMENT SYSTEM - BBPS)

Bharat Connect, operated by NPCI Bharat BillPay Ltd., is Indias integrated digital bill payment platform. It supports payments through UPI, internet banking, and Prepaid Payment Instruments (PPIs), covering utility bills, telecom, and now credit card payments.

• Transaction value grew from ?2.65 lakh crore in 2023 to ?7.7 lakh crore in 2024, supported by an increase in transaction count from 1.3 billion to 2.2 billion.In March 2024, RBI allowed non-bank payment aggregators to operate on Bharat Connect, expanding participation.

• From July 2024, all credit card bill payments via third-party apps must be routed through Bharat Connect (excluding direct bank channels or standing instructions).

• HDFC Bank and other major credit issuers integrated with the platform by mid-2024.

Market Share: As of 2025, Bharat Connect accounts for ~40% of transaction volume and ~33% of transaction value for credit card bill

payments, supported by apps like CRED, PhonePe, Google Pay, and Paytm.

• Transaction value rose to ?1.23 lakh crore in March 2025, up from ?1.03 lakh crore in February

2025, supported by an increase in transaction count from 234.06 million to 260.07 million.

Additionally, in October 2024, Bharat Connect added NPS (National Pension System) as a biller, expanding its scope further.

SOFTWARE AS A SERVICE (SAAS)

Indias SaaS sector is expanding rapidly, buoyed by cloud adoption, remote work trends, and a vibrant start-up ecosystem. The market is projected to grow at a CAGR of 27.3%. Today, India is home to over 1,000 SaaS companies, with more than 150 earning annual revenues above US$1 million, reflecting its rise from a nascent sector to a global powerhouse..

Key drivers include:

• Widespread cloud adoption

• Startup growth and digital transformation

• Remote collaboration trends

Government initiatives like “Digital India” and “Make in India” have created an enabling ecosystem. Despite its strengths, the sector must address data security and regulatory compliance to sustain global growth.

Source: https://www.ibef.org/blogs/the-rise- of-saas-in-india-trends-and-future-outlook

SPEND MANAGEMENT

In India, B2B spending is expected to reach $USD 15tn by 2030. This gives a huge opportunity to Indias spend management sector which is already witnessing increased adoption, due to the need for cost control and real-time financial oversight. These platforms help automate procurement, budgeting, and expense tracking. Features like Al, analytics, and system integration drive compliance and transparency.

Traditional expense reporting methods are proving inefficient and costly. Modern solutions automate the

entire lifecycle—from submission to reimbursementensuring compliance and faster processing.

Source: Frost & Sullivan Analysis

ARTIFICIAL INTELLIGENCE (Al)

Al is reshaping Indias economy by enhancing productivity and unlocking new markets. Sectors such as financial services, retail, entertainment, education, and healthcare are witnessing tangible benefits from Al deployment. Notable examples include: • 70% reduction in underwriting time in finance

• 80% cut in media production costs

• 30-40% user growth in vernacular edtech

Indias Al market is projected to triple, crossing ?1,45,384 crore (~US$17 billion) by 2027. The governments ?10,000 crore IndiaAl initiative is expected to further fuel this momentum by building national Al infrastructure, including access to 10,000 GPUs and 45 new data centres planned for 2025.

Source: https://www.ibef.org/news/india-s- artificial-intelligence-ai-market-set-to-triple- may-cross-rs-1-45-384-crore-us-17-billion-by- 2027-report

EMPLOYEE BENEFITS

Indian companies are customising benefit packages to retain talent. Popular options now include Smart EPP, mental health support, DEI initiatives, and flexible insurance plans. The market is expected to grow at a CAGR of 24.87%. Technology plays a key role in managing and delivering these benefits efficiently.

Source: https://economictimes.indiatimes. com/jobs/hr-policies-trends/india-inc-turns- flexible-with-benefits-to-retain-talent/arti- cleshow/118922407.cms & Frost & Sullivan Analysis

CHANNEL REWARDS AND RECOGNITION

Major trends in the channel loyalty market in India are as follows:

• Mobile-first loyalty (94% partner preference)

• Al-driven engagement boosts retention by 28%

• Gamification and eco-friendly rewards are gaining traction

ACCOUNTS PAYABLE

As businesses automate finance functions, accounts payable has become a focus for optimisation.

Modern tools offer real-time invoice tracking, vendor management, and seamless ERP integration. The market is projected to grow from ?11.86 billion in CY2024E to ?21.76 billion by CY2030E, at a CAGR of 10.64%.

Source: Frost & Sullivan Analysis

INDIAN TRUCKING INDUSTRY

With 12.5 million trucks and 3.5 million truck operators, the trucking sector is a major component of Indias logistics infrastructure.

• Revenue pool: US$ 18-25 billion in FY24 ¦* US$ 35 billion by FY28

• Growth drivers: increased consumption, infrastructure upgrades, and high-density freight corridors

Digital integration and real-time communication platforms are emerging as enablers of operational efficiency in this sector.

Source: Redseer analysis

OPPORTUNITIES

• India holds a 48.5% global share in real-time payments with 87% fintech adoption-far above the global average.

• Strong government support via PMJDY, India Stack, Digital India, and Make in India fuels digital finance.

• Surge in UPI, credit card, and gift card usage-strong foundation for payment-linked services.

• Deep talent pool, cost advantages, and thriving startup ecosystem support SaaS, Al, and digital tech innovation.

• Internet penetration >50% in 2024, heading toward 900M users by 2025-expanding digital addressable market.

• Fintech market to grow at 30%

CAGR by 2029, driven by inclusion, rising income, and smartphone penetration.

• SaaS industry to reach $70B by 2030, powered by cloud adoption, digital-first businesses, and remote work.

• UPI commands 83% of all payment volumes, with continuous innovation like UPI Circle and ICD-ripe for enterprise integration.

• Credit card base projected to reach 200M by FY29, opening up credit- linked spend solutions.

• Gift card market to touch $15.7B by 2028, powered by personalisation, loyalty integration, and corporate usage.

• Rising demand for Al-powered spend & travel management, creating room for workflow automation and advanced analytics.

• Customisable employee benefits are gaining traction, enabling solution providers to tap into HR tech segments.

• Channel rewards market growing at 14% CAGR, with strong shift to mobile-first, gamified, and eco- friendly engagement models.

THREATS

• Regulatory overhang: RBI, MCA, GDPR, could affect operations and partnerships.

• Entry of new global and local SaaS/ fintech players.

• Disruptions or loss of critical third- party integrations (UPI, banks, processors) could impact continuity and user trust.

Source: https://www.ey.com/content/dam/

ey-unified-site/ey-com/en-in/insights/finan-

cial-services/documents/ey-the-role-of-fin-

tech-in-building-viksit-bharat.pdf, https://

shorturl.at/Sn7wK, https://shorturl.at/vLxJw,

https://www.pwc.in/assets/pdfs/indian-pay-

ment_handbook-2024.pdf, https://www.mon-

eycontrol.com/news/opinion/evolution-of-gift-

cards-in-india-s-digital-economy-12932277.

html & EMIS: The Insights Partner Report

(ADD)

ABOUT ZAGGLE

Zaggle is a Software-as-a-Service (“SaaS”) fintech platform that digitises business spends through automated workflows tailored for organisations of all sizes. Incorporated in 2011, we operate at the intersection of the SaaS and fintech ecosystems, delivering integrated, user-friendly solutions that optimise enterprise spend, automate processes, and enhance financial control and operational efficiency.

Our unified platform offers corporate administrators a configurable, intuitive dashboard and provides employees and ecosystem partners-such as vendors, suppliers, and channel partners-with an easy-to-use mobile application. We enable businesses to digitise, automate and optimise their spend-related processes through a comprehensive suite of solutions integrated with payments, analytics, and workflow automation.

Our plug-and-play architecture allows us to introduce new offerings to both existing and potential customers seamlessly. A robust technology backbone and deep partnerships with banks, fintech companies, and card networks support this agility. We offer a wide variety of spend management products covering employee expenses, vendor payments, and channel partner incentives, as well as specialised use cases such as fleet management and international payments.

We operate in a B2B2C model, interfacing with our primary customers (i.e., businesses) and end users (i.e., employees, vendors, dealers, suppliers, and channel partners). As of March 31, 2025, we had issued over 50 million business credit and prepaid cards in partnership with leading banking partners, serving more than 3.2 million end users.

Our platform is sector-agnostic, catering to businesses across the BFSI, technology, healthcare, manufacturing, retail, FMCG, infrastructure, pharmaceuticals, automotive, and oil & gas sectors. Our marquee client base includes Indus Towers, Tech Mahindra, Siemens Limited, Honasa Consumer (Mamaearth), PhysicsWallah, Wonder Home Finance, Forbes Marshal, Mahindra First Choice Wheels, AGP City Gas, Blinkit, Can Fin Homes, Big

Basket, Mumbai Metro One, Hitachi India, Baroda BNP Paribas AMC,

Blue Star, Recur Club, HDFC Ergo General Insurance, Repute, Skydo Technologies, PNB MetLife, Wipro, Emami, Hiranandani Constructions, Wockhardt, Digicare Health, Hoichoi, White Oak Capital, Inox India, Volvo Auto India, Skoda Auto Volkswagen India, NFL Finance, and Motilal Oswal, among others.

We have demonstrated consistent customer growth-from 1,753 customers as of March 31, 2022, to 2,411 in FY23, 3,016 in FY24, and 3,455 as of March 31, 2025-translating to a CAGR of 25.4%.

As of March 31, 2025, our customer base included 3,455 corporate accounts (more than 250 users) and 635 SMB accounts (up to 250 users).

Our platform is designed to support the following key spend management verticals:

EMPLOYEE EXPENSES, REIMBURSEMENTS AND BENEFITS

• Save: A SaaS-based platform for business spend management, enabling digitised employee reimbursements and tax benefits.

• TaxSpanner: A tax preparation and e-filing platform offering digital income tax and GST filing services to businesses and individuals.

ACCOUNTS PAYABLE PLATFORM FOR VENDOR MANAGEMENT

• Zoyer: An integrated, data-driven SaaS spend management platform that automates core invoice-to-pay workflows. It includes a petty cash solution and analytics dashboard to help enterprises enhance financial control, reduce fraud, and eliminate cash-handling risks.

BROME (Branch Recurring Operating Monthly Expenses): A solution to streamline multi-branch and store recurring expenses with centralised management, automation, and realtime visibility.

CHANNEL PARTNER INCENTIVES AND REWARDS

• Propel: A corporate SaaS platform for rewards and recognition, enabling businesses to incentivise channel partners and employees via co-branded prepaid gifting cards or catalogue-based brand vouchers.

SPECIALISED USE CASES AND PAYMENT SOLUTIONS

• Zatix: An intelligent spend analytics platform that delivers actionable insights and improves cost efficiency.

• Fleet Management: A dedicated dashboard and analytics solution

for fleet owners and fuel providers, offering spend controls and approval workflows.

• Zaggle International Payments (ZIP): An international payments platform offering transparency, convenience, and regulatory compliance.

• Forex Card: A USD-denominated business travel card with zero crosscurrency conversion charges, full app-based control, chip-enabled security, 24/7 support, and global acceptance at ATMs, POS terminals, and online platforms.

Our offerings are highly configurable, with API-based integrations that ensure a seamless user experience. Businesses use our platform to manage spending

related to employees, business operations, vendors, channel partners, and consumers. This provides us with access to a broad and diverse user base.

We maintain a low customer acquisition and retention cost through strategic partnerships and platform integration, offering a compelling cross-sell and up-sell opportunity across our product suite. We also collaborate with various fintech and value-added service (VAS) providers to offer complementary solutions such as insurance, investments, tax planning, and device leasing.

Our key banking partners include HDFC Bank, ICICI Bank, Axis Bank, Induslnd Bank, Kotak Mahindra Bank, IDFC First Bank, and NSDL Payments Bank, with whom we collaborate to issue cards and power various financial services. Our partner networks also support international payments and card issuance via established global card networks.

Thanks to our robust offerings and strong technology platform, weve maintained high customer retention, with churn rates consistently under 2% in recent years:

BUSINESS PERFORMANCE

Segment-wise or product-wise performances Discussion on financial performance concerning operational performance:

FY 2024-25 _......

? Million

Particulars	March 31, 2025	March 31, 2024
	Audited	Audited
Revenue from Customers
Program fee	5,456.41	3,218.43
Propel platform revenue / gift cards	7,218.48	4,225.06
Platform fee / SaaS fee / service fee	362.68	312.49
Total	13,037.57	7,755.98
Geographical segment information
Within India	13,037.57	7,755.98
Outside India	-	-
Total	13,037.57	7,755.98

FINANCIAL PERFORMANCE

RESULTS OF OPERATIONS

The following table presents certain information regarding our results of operations for Fiscal Years 2025 and 2024.

FISCAL 2025 COMPARED TO FISCAL 2024

? Million

Particulars	FY 2024-25	FY 2023-24
Revenue from Operations	13.037.57	7,755.98
Other Income	267.73	112.71
Total income	13,305.30	7,868.69
Cost of point redemption / gift cards	6,781.00	3,797.16
Consumption of cards	1700	12.28
Employee benefits expense	66741	512.82
Finance costs	76.55	137.17
Depreciation and amortisation expense	14794	83.63
Other expenses	4,432.06	2,727.82
Total expenses	12,121.96	7,270.88
Profit before share of profit from associates and tax	1,183.34	597.81
Share of profit of associates	0.83	-
Profit before tax	1,184.17	597.81
Current tax	278.58	162.11
Deferred tax	26.61	(4.50)
Total tax expense	305.19	157.61
Profit after tax	878.98	440.20

INCOME

Our consolidated revenue from operations increased by 68.10% to ?13,037.57 Million in Fiscal 2025 from ?7,755.98 Million in Fisal 2024. Revenue growth was driven by strong performance across all three key business segments (Save, Propel and Zoyer). This increase was primarily as a result of the following factors:

• ‘Propel platform revenue / gift cards: Our ‘Propel platform revenue / gift cards increased by 70.85% from ?4,225.06 Million in Fiscal 2024 to ?7,218.48 Million in Fiscal 2025. This was primarily attributable to an increase in our User base from 2.73 Million Users as of March 31, 2024 to 3.28 Million Users as of March 31, 2025 and increase in our Customers from 3,016 as of March 31, 2024 to 3,455 as of March 31, 2025.

• Program fee: Program fee increased by 69.54% from ?3,218.43 Million

in Fiscal 2024 to ?5,456.41 Million in Fiscal 2025. This growth was driven growth in customers/users along with a corresponding increase in spending by our existing users that facilitated an increase in the interchange fees received due to an overall increase in the scale of our business. The increase in program fees was driven by growth across Save and Zoyer businesses.

• Platform fee / SaaS fee / service fee: Our Platform fee / SaaS fee / service fee increased by 16.06% from ?312.49 Million in Fiscal 2024 to ?362.68 Million in Fiscal 2025. This was primarily attributable to an increase of 20.10% in our User base from 2.73 Million Users as of March 31, 2024 to 3.28 Million Users as of March 31, 2025 and higher adoption of platform by the users.

FY 2024-25 is strong year for us and this performance was primarily driven by sustainable growth in revenues on account of platform expansion and launching of new products.

OTHER INCOME

Our other income increased by 13754% to ?267.73 Million in Fiscal 2025 from ?112.71 Million in Fiscal 2024, primarily due to increase in treasury income.

This growth was driven by increase in

investible cash balance due to IPO and QIP proceeds. Additionally, there was a one-time gain on the re-measurement of our investment in an associate, due to the acquisition of an additional stake in Taxspanner, in accordance with Ind AS.

EXPENSES

Our total expenses increased by 66.72% to ?12,121.96 Million in Fiscal 2025 from ?7,270.88 Million in Fiscal 2024. As a percentage of total income, our total expenses were 92.98% as compared to 93.75% in Fiscal 2024. The increased expenses were incurred due to a substantially higher proportionate cost of point redemption/gift cards and higher Incentives and cash back.

COST OF POINT REDEMPTION/GIFT CARDS

Our cost of point redemption/gift cards increased by 78.58% to ?6,781.00 Million in Fiscal 2025 from ?3,797.16 Million in Fiscal 2024 primarily due to a proportionate increase in our ‘Propel revenue as stated above, which is directly proportional to the cost of point redemption/gift cards.

EMPLOYEE BENEFIT EXPENSE

Our employee benefit expenses increased by 30.15% to ?667.41 Million in Fiscal 2025 from ?512.82 Million in Fiscal 2024 primarily due to an increase of?196.61 Million in salaries, wages and bonus was partially offset by a decrease of ?57.17 million in Employee Stock Option Plan (ESOP) expenses.

The increase in expenditure is due to

increase in our workforce from 303 employees as of March 31, 2024 to 425 employees as of March 31, 2024. The increase in salaries, wages and bonus was primarily due to an increase in hiring of personnel in our product development, information technology and sales teams, which require a higher compensation.

FINANCE COSTS

Our finance costs decreased by 44.19% to ?76.55 Million in Fiscal 2025 from ?137.17 Million in Fiscal 2024, primarily due to effective refinancing efforts, whereby high-cost debentures were replaced with low-cost term loans. In addition, repayment of term loans using QIP proceeds further contributed to the overall reduction in finance costs.

DEPRECIATION AND AMORTISATION EXPENSE

Our depreciation and amortisation expense increased by 76.90% to ?147.94 Million in Fiscal 2025 from ?83.63 Million in Fiscal 2024, primarily due to continuous investment in enhancement and launch of our new products.

OTHER EXPENSES

Our other expenses increased by 62.48% to ?4,432.06 Million in Fiscal 2025 from ?2,727.82 Million in Fiscal 2024, primarily due to an increase in incentives and cash back to customers to ?3,598.72 Million in Fiscal 2025 from ?2,168.27 Million in Fiscal 2024 which is in line with scale of business.

s. No.	Ratio	Numerator	Denominator	March 31, 2025	March 31, 2024	Variance	Variation	Reason for change more than 25%
1	Current Ratio (in times)	Current assets	Current liabilities	20.06	6.18	13.88	224.60%	Unutilised IPO and QIP proceeds were deployed in temporary fixed deposits with banks. This resulted in improvement of current ratio.
2	Debt-Equity Ratio (in times)	Total Debt	Total equity net of NCI	0.01	0.13	(0.12)	(92.31%)	Variance on account of Increase in equity due to QIP and foreclosure of loans during current year.
3	Debt Coverage Ratio (in times)	Earnings available for debt service	Total Interest and principal repayments	1.88	0.73	1.15	15753%	Variance on account of foreclosure of loans during current year.
4	Return on Equity (ROE) (in %)	Net Profit after taxes	Total equity net of NCI	7.04	765	(0.61)	(797%)	Not a major variance.
5	Trade Receivables turnover ratio (in times)	Credit Sales	Average Trade Receivables	6.69	5.59	1.10	19.68%	Not a major variance.
6	Trade payables turnover ratio (in times)	Credit Purchases	Average Trade Payables	202.87	6792	134.95	198.69%	Variance on account of an increase in purchases during the current year in line with the increase in business.
7	Net capital turnover ratio (in times)	Net Sales	Working Capital	1.30	1.58	(0.28)	(1772%)	Not a major variance.
8	Net profit ratio (in %)	Net Profit after taxes	Sales	6.74	5.68	1.06	18.66%	Not a major variance.
9	Return on Capital employed (in %)	Earnings before interest and taxes	Capital Employed	20.70	22.87	(2.17)	(9.49%)	Not a major variance.

Return on Net Worth (“RoNW”) is a measure of profitability (expressed in percentage) and is defined as profit after tax for the year divided by our Total Equity net of NCI for the year. The table below reconciles our profit after tax for the year to RoNW, for the periods indicated

? Million

Particulars	As of and for the financial year ended March 31
	2025	2024
Profit after tax for the year (A)	878.98	440.20
Share Capital	134.21	122.49
Other Equity	12,345.51	5,631.33
Net Worth (B)	12,479.72	5,753.82
Return on Net Worth (A)/(B) (%)	7.04	7.65

Disclosure of Accounting Treatment

The statements made in this report describe the Companys objectives and projections that may be forward-looking statements within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed or implied, depending on economic conditions, government policies, and other factors beyond the Companys control.

Risk Mitigation Strategy

Risk Category	Description	Mitigation Strategy
1. Revenue Concentration Risk	High dependency on Program Fees derived from arrangements with banking partners, especially Preferred Banking Partners. Any disruption or termination of these relationships could significantly impact revenue and cash flows.	Zaggle maintains strong, multi-bank partnerships with leading institutions including HDFC Bank, Axis Bank, Induslnd Bank, and others. Its plug-and-play architecture and expanding partner network allow the company to onboard new banks and diversify sources of interchange revenues. New product lines such as ZIP and fleet solutions also help reduce overdependence on any one revenue stream.
2. Third-party Dependency Risk	Business operations rely on payment networks, channel partners, and third- party service providers for transaction processing, logistics, and customer support. Any service outage, relationship breakdown, or compliance failure could disrupt operations.	Zaggle enters into robust SLAs and long-term contracts with third-party providers. It is progressively diversifying service partners and investing in redundancy and fallback mechanisms. Ongoing vendor audits and compliance assessments are conducted to ensure business continuity, quality control, and data protection.
3. Competitive Risk	The fintech and SaaS markets in India are highly competitive and rapidly evolving. There is a constant threat of new entrants and existing competitors launching similar or superior offerings, including from partners.	Zaggle differentiates itself through an integrated SaaS + fintech platform, a diversified product suite, and a B2B2C model. It has consistently maintained a high customer retention rate (churn below 2%) and focuses on continuous product innovation, including Al-driven analytics (Zatix) and international payments (ZIP). A scalable platform enables rapid deployment of new offerings for competitive advantage.
4. Seasonality Risk	Business is subject to seasonal variations, particularly during festive periods and financial year-end, which could lead to revenue and cash flow fluctuations across quarters.	While seasonality is inherent, Zaggle uses predictive analytics and historical transaction data to manage inventory, resource allocation, and working capital. The company is also working to even out revenue streams by promoting usage through non- seasonal incentives and year-round engagement programs, especially for SMBs and vendor platforms.
5. Regulatory Risk	The business is subject to oversight from multiple regulators including RBI, MCA, and others. Any changes in laws related to PPIs, interchange fees, or data governance could impact operations. Banking partners compliance status can also affect Zaggles offerings.	The company maintains a dedicated compliance and legal function that actively tracks regulatory developments. It works in close coordination with its banking partners to ensure alignment with evolving PPI and fintech norms, and regularly updates internal processes in accordance with RBI guidelines and other applicable laws. Zaggles sector-agnostic approach and modular offerings help it adapt quickly to regulatory changes.
6. Data Privacy & Cybersecurity Risk	Given the nature of operations, Zaggle collects and processes significant volumes of sensitive user, customer, and employee data. Any data breach or cyberattack could lead to legal liability and reputational damage.	Zaggle has implemented advanced encryption standards, multi-layer security controls, and third-party penetration testing protocols. The company also enforces access controls, data minimisation policies, and continuous monitoring. Its third-party providers are required to comply with industry best practices and sign data protection agreements aligned with Indian and global frameworks like GDPR.
7. Macroeconomic and Geopolitical Risk	The business is highly sensitive to macroeconomic conditions in India. Inflation, geopolitical tensions, global recession, or investor sentiment in emerging markets may impact fintech adoption and investment.	Zaggle has a diversified client base across industries and geographies within India, which helps mitigate sector-specific shocks. Its focus on core digital infrastructure and integration into enterprise workflows makes it resilient during downturns. The company also maintains strategic partnerships and explores international revenue opportunities (like ZIP and forex cards) to reduce reliance on domestic macroeconomic trends.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

The Companys management ensures that the internal control system is suitable and proportionate to the Companys size and operations, providing reasonable assurance that assets are protected and transactions are accurately executed and recorded in line with managements authorisation and accounting policies. Regular reviews are conducted to adjust existing policies in response to evolving business needs, enhance governance, and ensure compliance with regulatory changes. All records are adequately maintained to facilitate the preparation of financial statements and other financial information. Additionally, the Company conducts audits to assess the effectiveness and security of its operations, information technologies, and data, adhering to global standards. Throughout the year, the Audit Committee evaluate various aspects, including internal audit reports, internal control systems, and financial disclosures. The Company has an adequate Internal Control System

in place to mitigate any fraud, errors, misrepresentations, The Company also in compliance with Internal Financial Controls over Reporting (ICFR) where all the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to company policies, safeguarding its assets prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information. In addition to ICFR, the Company appointed the external audit firm “RYN & Co LLP” to conduct internal audits.

MATERIAL DEVELOPMENTS IN THE HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING THE NUMBER OF PEOPLE EMPLOYED.

The Company treasures its human capital as its most important asset.

The Company is committed to driving people excellence, supporting business growth by aligning people strategy to business goals and needs. We are

dedicated to fostering a conducive, rewarding, and inclusive work culture and enhancing employee well-being by providing comprehensive support for their performance, emotional, and physical health. We ensure that resources and actions are effectively implemented to uphold sustainable health, safety, and environmental practices. Our commitment extends to organising financial wellness events to educate employees on investment tools and risk management strategies. The Company regularly conducts a structured induction process at all locations, along with skill development programmes and management development programmes to enhance managerial skills. The employee recognition programme is a vital part of the Company. Regular communication with top management helps identify and reward top performers across functions. An objective appraisal system based on KPIs is in place to incentivise employees. We have redesigned the organisational structure and successfully built a strong mid-to-senior leadership team across functions.

There were 425 employees on the companys payroll as of Mar 31, 2025.