Zaggle Signs Reward Platform Deal with Mahindra First Choice

31 Dec 2024 , 07:33 PM

Zaggle Prepaid Ocean Services Ltd has entered into an agreement with Mahindra First Choice Wheels Ltd to provide its employee reward platform, Zaggle Propel. Mahindra First Choice is entitled to access Zaggle’s reward services, through the one year-long ‘Propel Service Agreement’.

On December 31, 2024, the stock of Zaggle closed at ₹519.50 which is a 1.61% dip than the previous close. The Stock has gained a total of 139% in the last one year, and 76% in the last six months. Early this month, Zaggle announced its Qualified Institutional Placement (QIP) to mop up ₹450 crore, where the company may increase the same to ₹750 crore.

QIP is valued at ₹523.2 a share, where it offers 6.75% discount as compared to market price and should lead to 10.5% equity dilution. The proceeds from QIP will fortify the capital base of Zaggle and enable it to support its growth strategies, which include inorganic growth and strategic investments.

Founded in 2011 by Raj Narayanam, Zaggle is a spend management and corporate employee benefits company, having issued more than 50 million prepaid cards and having more than 3.03 million users as of September 2024. CEO Avinash Godkhindi said that for FY25, he was projecting a growth rate of 55% to 60% with margins in the range of 9% to 10%.