Why promotor selling their stake?
Posts tagged Value Pickr
Zaggle_A platform to address pain points for enterprises (23-07-2024)
Investment Thesis
Company addressing pain point in Spend Management, Rewards & other white spaces–
Given the company is successfully identifying the white space in enterprise tools and building platform to fill those gaps is a major win for the company.**
Company has been innovating and adding products to make enterprise clients life easier is the biggest strength of the company
Negligible CAC
• Zaggle goes through B2B2C route to reduce the CAC with an innovative business model which gives it an edge vs competitor
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With discounted monthly SaaS fees, Company is more focused on earning money by getting commission on spends through branded cards
Flexible Product / Deployment
• Zaggle can deploy its platform in any enterprise grade HRMS/ERP tool starting from Tally to SAP. This makes it easier to onboard customer and reduced the onboarding time to minimal
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There is no limitation for the corporate to use Zaggle co-branded corporate cards, Client can keep using only the platform
Win-win proposition for all stakeholders
• Banks –
- Banks get an entry into a large pool of corporate salary relationships.
- Also, they can deploy their co-branded cards at 0 CAC
- There is no tech cost for banks as all the API/ integration is done by Zaggle
Corporate -
- get the card, which is a system of transactions,
- to tightly couple with Zaggle system, which is a system of engagement
- with their system of records which is their ERP
Zaggle –
- Earns commission on propel points and card spends
- Earns SaaS fees platform deployment
Unique business model
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Given it is a Fintech, Zaggle earns at the point of payment by building the processes (which are given to client at minimal cost)
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Lower SaaS fees entice corporates of all sizes to opt for Zaggle platform
Growth Levers
There are 4 levers of growth for Zaggle
- More number of corporates,
- Users within that corporate,
- Greater number of solutions i.e. cross sell and upsell opportunities,
- The amount of spending which the users do on the cards
Deeper penetration in existing customer groups; currently, only there is only a ~20% overlap in Propel and Save customers
Wide addressable market
• Opportunity size for spends management software pegged at Rs 139bn by FY27**
• Credit card & Prepaid card issued and spent are increasing at rapid pace**
• ARR Payments amounting to ~Rs 8,000 cr. is being done using Zoyer platform**
• Increase in formal workforce is another growth trigger for Zaggle**
High customer retention rates
• Zaggle has strong customer retention capabilities with the churn rate for customers terminating contracts being consistently low (annualized sub-2%)
• With its integrated offerings, the company has been successful in reducing the negative impact of low-switching costs associated with a SaaS business
Experienced promoters with deep domain knowledge
• The senior management team is ably supported by a professionally qualified workforce with extensive knowledge, understanding and experience in the fintech, banking, technology, infrastructure, and healthcare industries. (Refer- Board of Directors & Management Team section)
Smallcap momentum portfolio (23-07-2024)
Hi @visuarchie,
I am following on this thread from couple of weeks.
Thank you for sharing your knowledge to the community.
Started creating the smallcap momentum sheet by taking reference from your sheet.
And started creating basket in Zerodha.
Having couple doubts I had while creating the basket order.
Considerting case : Stock A is value of 5000, Stock B is value of 20, Stock C value of 133
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When the basket is created you mentioned that every stock is provided with 5% weightage. Does this mean you pick the stock A price i.e, 5000 as reference?
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If the maximum price is taking as reference, then other stock units will be decided by the formula (Stock price of A/Stock price of B)?
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When creating the basket, order to be placed with market price? or order with limit?
Could you please help to clarify my quireies.
Annapurna Swadisht Ltd – A Swadisht FMCG investment? (23-07-2024)
Sorry … may be i got confused between financial years or news publishing date … i dont know… but if we calculate with 50% CAGR its 400cr in FY25 100cr per qtr… there Is still a shortfall of 10-11%… hope they will cover up in the upcoming qtrs
Zaggle_A platform to address pain points for enterprises (23-07-2024)
Recent Management Commentary and Con-call Highlights (4 Con-calls since IPO)
Raj Narayanam, Executive Chairman, Earnings Conference Call:
“FinTech’s are at an inflection point where there is a perfect concoction brewing between increasing digital adoption, ever-improving digital infrastructure, and proactive regulations to create a lasting and sustainable ecosystem. This trend will further drive growth and value for the fintech sector.”
“There is a remarkable jump in terms of the fees what we can charge the corporates now per user, per platform basis than what it was before. We intend to capitalize on this opportunity and capture a significant market share in the coming two years. "
“Zaggle has always partnered with and worked with very large banks to make sure that we maintain the highest level of regulatory and compliance standards”
Avinash Godkhindi, Managing Director, and CEO, Earnings Conference Call:
“Innovation remains at the core of our strategy. We continuously invest in research and development to introduce new products and use cases that meet the ever-changing demand of our customers. Innovation is a driving force behind our competitiveness.”
“Consistent demand for digitization, transparency, tracking and budgeting of spends gave birth to most of Zaggle’ s products”
“We are set to drive growth by both acquiring new customers and cross-selling to the existing ones. This year, we are putting a special emphasis on cross-selling of our products as well as of our partners in the space of insurance, loans, taxation, investments, etcetera.”
Strategic Investment in Span Across IT Solutions & Inorganic Expansion Opportunities:
“We have made a strategic investment in a company called Span Across IT Solutions Private Limited. Span Across offers digital products for online tax filing and financial wellness solutions. This is a strategic investment, it’s a product decorative investment and access to Span’s product, which would be integrated with our offerings. Thus, increasing the value proposition for our customers.”
“We are actively looking at opportunities for inorganic expansion. We are looking at companies which are EBITDA accretive or product accretive or the ones who will give us access to new geographies. We are in active discussions with a few players across different, but synergistic domains like API banking platform, payments and possibly NBFCs. The revenues from these acquisitions would be in addition to our organic revenue growth which we have already mentioned that we would like to grow so that we double our revenues in the next 2 years.”
Strategic Role of Zoyer Platform:
“Zoyer, our accounts payable platform, which is bundled with our business credit cards, played a pivotal role in this year’s performance. Launched just over a year ago, Zoyer is strategically positioned to help us garner a significant market share in the account payable platform space. Our strategy is to onboard corporate clients and their network of employees, channel partners and vendors who become the ultimate users of our solutions. This helps us to keep our CAC to a minimum.”
Strategic Roadmap
“Client-wise revenue concentration is limited with the top 20 customers contributing less than 20% of the revenues”
“Additionally, only 20% of the corporates currently use both Propel and Save while Zoyer is a newly launched product. This abodes us a huge opportunity to cross-sell our products to our existing customers”
“We are augmenting our current expense management platform to offer much more flexibility for corporates to do self-booking on our platform. What this means is that a lot more spends would flow through our platform.”
Zaggle_A platform to address pain points for enterprises (23-07-2024)
I might have avoided the IPO but surely keep track of the company given other business aspects were strong enough.Pre- IPO_ Management interview
Zaggle_A platform to address pain points for enterprises (23-07-2024)
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Zaggle_A platform to address pain points for enterprises (23-07-2024)
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