Great beginning for FY 25. Company guided to double FY 24 revenue in 2 years but looking at current run rate, expect this to happen much earlier…
Disclosure - invested for last 6 months
5 Likes
Zaggle reported a strong set of numbers
- 45-55% revenue growth in fy25 over fy24 and in 2 years 2x revenue from fy24 levels - This
is just organic guidance - Watch out for Zoyer - This can be 40-50% of Rev (FY27)
- USA - looking for acquisition here. M&A might gets finalised for others in H2.
- Skydo tech - - cross border payments (strategic partnership)
- Ebitda before ESOP kinda adjusted should remain healthy along with 2x in 2Y rev guidance.
They are also participating a NDR (non-Deal roadshow) organised by Equirius
2 Likes
Can anyone please share how is the experience for the users of Zaggle? On the Google Play Store, the average rating is 3.7, and in the last two months, the maximum rating is a 1-star rating.
The customer churn ratio is negligible. So, that says that clients are happy with Zaggle but the Play Store reviews are saying some other story. Can anyone please throw some light on this
6 Likes
I am a user of Zaggle’s Zinger prepaid card - issued by my employer.
It can be used to pay for meals in hotels, restaurants etc. To me, it is just another way the employer is paying me. I haven’t had any issue using the Zaggle prepaid card. Also, I am agnostic to which card I use. Like many of my work colleagues, I first exhaust the prepaid balance in Zaggle and then use my own debit card.
19 Likes
Thanks for your response. Can you please share some details on below mentioned questions:
Does that card works at every hotel/restaurant
that you want?
If you go backwards, you using Zaggle card for expenses, does this setup helps your employer to analyse the expense in better manner? I mean the experience with Zaggle should be better than it used to be with manual tracking via excel and emails. So is it really happening for your employer?
2 Likes
Also, could you compare it with Sodexo / Pluxee card?
1 Like
1 Like
Zaggle To Exceed Revenue Guidance For Next Fiscal, Says CEO Godkhindi
4 Likes
Has anyone noticed their consitently high receivables? Its 80% of operating profit…is it usual?
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)
7 Likes
With re: receivables, I have an explanation to this.
Now H2 is where most of the spends (incentives, vendor payment, benefits etc.) happen in companies – per the Q1FY25 transcript, H2 is 60-65% of spends. Hence it would be reasonable to assume Q4 at 35% of spends & hence, February+March is about two-third i.e. 23% of spends.
The company operates on a 30-60 day cycle which means the money (revenue) Zaggle is expected to receive in Feb+Mar – is received in April and May. Since the receivables information you’re seeing is as-on 31st March of any year, it’s likely you’ll see a reporting of 20-25% receivables-to-revenue ratio every year
11 Likes
Even most IT companies have a 60-days payable, they raise invoice at end of month & expect to get paid in 60 days. Most IT companies irrespective of profitability have good OCF/profit ratio.
One would expect Zaggle as SaaS to have huge OCF, but their OCF is consistently negative.
Even if H1 of an FY is a slow period, it might approximate to H2 of prev FY but OCF is still negative consistently for H1s too.
3 Likes
Zaggle Prepaid Ocean Services signs agreement With Founderlink Technologies. Under the agreement, Founderlink Technologies will offer business loan to Zaggle corporate customers
1 Like
Hi Shankar,
Given with Zoyer coming in a big way, H2:H1 skewness will reduce.
Also, WC. -
Propel is largely real time. You buy at one end and sell at other and money is received in advance (mostly). They keep some voucher in inventory if they get extra discounts at year end.
Debtor days
Software fees Is 30-60 days.
Program fees is 30-45 days.
Payables - usual payables.
Inventory - hardly any
But I think, WC shouldn’t be of much concern here. Corporates and banks both will pay as per schedules.
2 Likes
1 Like
Hi Piyush ji,
-
It should not. Zoyer is based on vendor payments & even vendors are mostly paid in H2. Generally Indian businesses don’t spend much in Q1 as budgets are being finalized. This is my view based on the companies I’ve worked in
-
Yes, it’s probable that the system will be streamlined. Referencing back to the earlier question a person had made and assuming everyone pays per schedule – plus with Zaggle growing, the 30-60 day cycle and esp. in H2 which is a heavy period, comes to 20% of revenue which is receivables as on 31st March.
Thanks for the note though. Ofcourse, I might be wrong in this assessment and will be happy to add to it as more information gets revealed in future calls/interviews
PS: Pleasantly enough, there is a direct line that has opened. It seems my newsletter reached Mr. Raj N’s mailbox and he’s subscribed to my newsletter 
17 Likes
Shankar - for your reference from last con call.
On a separate note, huge fan of your newsletters. Thank you bringing out such great articles.
3 Likes
On some digging, Founderlink is doing business under RecurClub (https://www.recurclub.com/)