Zaggle_A platform to address pain points for enterprises

**** Pre-requisite – How to read financials of Zaggle***

• SaaS fees and program fees are reported both on a net basis with almost no direct expenses involved which give us a gross margin of about 94%, 95%.

• In contrast, propel point revenues are recognized on a gross basis and the gross margin for this varies between 7% to 10%.

• Program fees (revenue side) encompass various revenue streams including interchange income and incentives from networks like Visa and Rupay.

1. • Program fees (expense side) have 3 components –
2. • cashback for prepaid cards,
3. • cashback for business credit cards
4. • cost of funds.
     FY’23 – had one component which was cashback against on prepaid cards.

• What are Intangible assets under development?

• One is Zoyer, which is yet to go completely live.
• ZatiX is the analytical platform, will capitalize once it gets completely done.

• ESOP guidance for FY’25

• With the existing set of costs, without any new issuance of ESOPs, FY25 will be around INR8 crores & INR3 crores is FY’26.

• Will the take rates remain constant

• It is evolving as more and more expenses are being incurred on recharges. Gas, fuel, electricity, etc. which have lower take rates but overall take rates should remain constant at 1.8%.

• Seasonality:

Business does anywhere between 35% to 40% of revenue in the H1, and 60% to 65% of the business in H2

• Working capital will be in three categories –

• SaaS fee – 50-60 days,
• Program fee, which Zaggle largely charge towards the banks – 50 – 60 days
• Propel point redemption – sometimes Zaggle must give them redemption upfront – 30 days