ZAGGLE’s trade receivable comprises:
• 55-60 days of receivables on SaaS fees, which is recoverable from corporates
• 45-60 days of receivables on program fees (interchange) which is recoverable from the bank.
However, billing for the program fees happens at month end.
• 30-35 days of receivables on gross basis of Propel points redemption. Billing for the same
happens at the time of redemption of Propel points and not at the time of allocation of these
points. This is receivable from the corporate.
Some of these revenue stream have lumpiness towards the quarter/year end and correspondingly, there
has been an increase in receivable days. In absolute amounts, Propel points/ Gift voucher business
consumes most working capital for the company.
(Source- equirus research report)
| Subscribe To Our Free Newsletter |
