Zaggle Acquires 38.34% Stake in Mobileware Technologies This investment highlights Zaggle's ongoing strategy to expand its fintech capabilities and offer enhanced payment solutions to businesses.
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Spend management firm Zaggle Prepaid Ocean Services Limited has made a strategic investment in Mobileware Technologies, reinforcing its position in the digital payments and fintech ecosystem. The company has acquired a 38.34% stake in Mobileware through a combination of primary and secondary investments.
As part of the deal, Zaggle invested INR 15.60 crore to secure a 26% ownership stake in Mobileware on a post-issue and fully diluted basis. Additionally, it acquired another 12.34% from Mobileware's promoters for INR 7.25 crore, bringing its total holding to 38.34%. This investment highlights Zaggle's ongoing strategy to expand its fintech capabilities and offer enhanced payment solutions to businesses.
Founded in 2011, Zaggle is a leading player in spend management, offering financial technology solutions, including corporate prepaid cards and SaaS-based expense management tools. With this latest move, the company aims to leverage Mobileware's deep expertise in digital payments infrastructure, which includes NPCI-certified solutions such as UPI, IMPS, AEPS, BBPS, and the proprietary API banking platform, TransXT.
Dr Raj P Narayanam, Founder and Executive Chairman of Zaggle, said, "We are excited about this partnership, which enables us to co-develop advanced solutions for our customers. Mobileware's strength in UPI and API banking aligns perfectly with our vision of delivering seamless, integrated payment experiences." He also noted that Zaggle would continue to explore targeted acquisitions to enhance its product portfolio in the coming year.
Mobileware Technologies, co-founded by Satyajit Kanekar, has been a key player in India's fintech landscape for 15 years. The company powers banks, NBFCs, and enterprises with its cutting-edge digital payments solutions. Kanekar expressed enthusiasm about the collaboration, stating, "Zaggle's investment marks a pivotal moment for us as we scale our technology and expand our market reach. This partnership will enable us to enhance our payment infrastructure, drive innovation, and set new standards for efficiency, security, and customer experience."
The investment also comes at a time when Zaggle is accelerating its growth trajectory. The company recently reported a 29.6% rise in consolidated profit after tax, reaching INR 19.7 crore in Q3 FY24. Additionally, it raised INR 595 crore through a Qualified Institutional Placement (QIP) to fund strategic acquisitions, with an ambitious target of achieving USD 1 billion in revenue.
Through this acquisition, Zaggle is set to capitalise on Mobileware's expertise, strengthening its digital payments offerings and positioning itself as a dominant player in India's evolving fintech ecosystem.
