Zaggle To Exceed Revenue Guidance For Next Fiscal, Says CEO Godkhindi
The company had earlier this year said that it plans to double its revenue growth by fiscal 2026.
Financial technology firm Zaggle Prepaid Ocean Services Ltd. is on track to exceed its revenue guidance by fiscal 2026, backed by several measures taken by the company recently, according to Managing Director and Chief Executive Officer Avinash Godkhindi.
Deeper penetration among existing corporate clients, higher spending by existing users, rising customer base, as well as expansion of product offerings are likely to be the key drivers for revenue growth, he said.
“The signs are looking good because we grew 113% last quarter and so we hope to exceed our guidance. We are trying to capture (our customers’ spends) 360 degrees,” Godkhindi told NDTV Profit.
In the last financial year, the fintech firm clocked a revenue of nearly Rs 776 crore. The company had earlier this year said that it plans to double its revenue growth by fiscal 2026.
Zaggle announced entering into a partnership with HDFC Ergo General Insurance Co. to offer services via its Propel reward platform (channel rewards and recognition). It had also inked a pact with BlueStar to offer services via the Zaggle Save platform.
However, all these contracts will not significantly contribute to the topline revenue of the company. Its MD and CEO said that this was not the nature of the business.
To increase its revenues further, the company is also focusing on cross selling.
“You will see a lot of revenue increase from the 3,100-plus corporates we have in the coming years because we are focusing on cross-sell. Our cross-sell percentage during the IPO was 16%. Now, it is close to 20%. We hope to get this up to 50% in the next three years,” Godkhindi said.
The top executive defined cross-selling as any customer who takes more than one of Zaggle’s products, including Propel, Save and Zoyer.
Zaggle at the moment is looking at adding large corporates as its customers. “There are about 50 contracts in the pipeline. These are fairly big names that we will announce in the coming quarters,” Godkhindi said.
The Zaggle CEO also hoped to renew the company’s one-year contract with HDFC Ergo after the time is over. He emphasised that contracts typically get renewed for Zaggle.
“If you are providing good quality service at a reasonable price, in our businesses we don’t see companies churn. These are large companies who want to continue with partners and our overall churn has been 1.5% for a year and those have been typically SME customers. We hope that this contract will continue for a few years and get renewed in the coming years as well,” Godkhindi noted.
