According to reports from CNBC TV18, Zaggle Prepaid Ocean Services expects its Zoyer spend management platform to contribute 45-50% of revenue going forward as enterprise adoption grows. Dr Raj P Narayanam, founder and executive chairman, stated that Zoyer currently contributes about 45% of the company's gross revenue and is expected to maintain or slightly increase its share as demand grows across procurement, travel and expense (T&E), and accounts payable solutions. The company's philosophy focuses on combining software with payment solutions, generating both software fees and interchange through payment instruments. As reported by Mangalam Maloo, Narayanam emphasized that 'Zoyer would continue to grow... in and around 45% to 50% is what it should remain', with enterprises increasingly adopting integrated spend management platforms supporting the company's long-term growth plans.
As reported by CNBC TV18, Narayanam said AI-related costs, which had previously put pressure on margins, have started to moderate. While he refrained from providing a precise earnings outlook, he expects operating margins to remain near current levels with room for improvement. The company has already started initiatives to improve operational cash flow and expects to become free cash flow positive over the next 18 to 24 months. Management noted that the company's SaaS and programme fee businesses generate gross margins of about 95%, while its Propel Points business has lower margins, with efforts underway to improve the overall business mix. As reported by Mangalam Maloo, Narayanam added that 'We possibly may be able to improve it a little bit, but would remain in and around that range for this year'.
According to CNBC TV18, the company's partnership with Bandhan AMC will add to Zaggle's strategy of combining software with payment solutions. Narayanam emphasized their philosophy of 'SaaS plus payments', stating that they get both software fees and interchange through payment instruments. The partnership is expected to contribute to improvements in margins and support the company's long-term growth plans as enterprises increasingly adopt integrated spend management platforms. As reported by Mangalam Maloo, the management expects improvements in margins and aims to become free cash flow positive over the next 18 to 24 months through this strategic partnership.
As reported by CNBC TV18, Zaggle Prepaid Ocean Services shares were trading at ₹176.19 on the NSE as of 2 pm. The company, which has a current market capitalisation of ₹2,366.47 crore, has seen its shares decline more than 50% over the last year. The stock performance reflects broader market conditions affecting the company's valuation despite its strategic initiatives and growth projections.
According to CNBC TV18, Narayanam said it was too early to quantify the financial impact of the recently announced merchant discount rate (MDR) framework, as the changes are expected to take effect from October 15. He noted that Zaggle's Broom and Zag.money businesses could benefit because they are linked to MDR-based transactions, but investors should wait for a few months of operating data before assessing the impact. He expects there will be some margin improvement and cash generation from the MDR changes. As reported by Mangalam Maloo, Narayanam added that 'I see that there will be some margin improvement, some cash which would come in'.
