Zaggle Prepaid share price extends rally to 2nd day, hits 5% upper circuit. Here’s why

Shares of Zaggle Prepaid Ocean Services, a SaaS fintech company, were locked at a 5% upper circuit for the second consecutive trading session on Friday, March 28, reaching ₹361.85 apiece after the company approved the acquisition of a 45.33% stake in Effiasoft Private Limited (Effiasoft).

"The Board of Directors of Zaggle Prepaid Ocean Services Limited held a meeting today, i.e., Thursday, March 27, 2025, and, inter alia, approved the acquisition of a 45.33% stake in Effiasoft Private Limited (Effiasoft) from Mr. Koushik Shee and Mr. Akula Krishna Rao, existing shareholders, for a consideration of ₹36.72 crore," the company said in Thursday's regulatory filing.

Further, the Board also considered a proposal to acquire a 5.67% stake in Effiasoft from Mr Koushik Shee and Mr. Akula Krishna Rao, existing shareholders, for a consideration of ₹4.59 crore.

On Tuesday, the company announced that it had completed the acquisition of a 38.34% stake in Mobileware through a combination of investment and share purchase agreements. The company invested ₹15.6 crore to acquire a 26% stake and purchased an additional 12.34% stake for ₹7.25 crore from Mobileware's promoters.

Earlier this month, the company entered into an agreement with Omega Healthcare Management Services Private Limited, under which Zaggle would provide Omega Healthcare Management Services Private Limited with Zaggle Save (an employee expense management and benefits platform).

Stock down 30% in 3 months

The company's shares have been sliding in recent months, with February marking the worst monthly performance since its listing in September 2023, as investors reacted negatively to the company's December quarter results.

Despite delivering record revenue and profit growth in Q3FY25, a sharp rise in operating expenses—driven by higher employee costs and other expenditures—dampened investor sentiment, leading to a 21% drop in the stock price in February. This extended the stock’s decline to 30% over the past three months, including March.

The company stated that the rise in employee costs was primarily due to workforce expansion to support business growth. Meanwhile, it expanded its customer base to over 3,300 and secured contracts with several major brands, including Blinkit, CanFin Homes, BigBasket, Mumbai Metro One, Mahindra First Choice Wheels, and Hitachi India, as per its earnings report.

For FY25, the company remains confident of achieving 58-63% growth in its top line. It is also evaluating inorganic growth opportunities to accelerate expansion, with discussions currently at advanced stages.

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