Zaggle Allocates $25 Million for Strategic Acquisitions and US Expansion
Zaggle sets aside $25 million for acquisitions in FY27, eyes US deal for international foray
The Economic TimesImage: The Economic Times
Zaggle, a spend management platform based in Hyderabad, India, is earmarking $20–25 million for acquisitions over the next year, focusing on a deal in the US. The company aims to accelerate its global expansion following a strong fiscal year, with revenue growth of 49.9% in Q4 FY26.
- 01Zaggle is setting aside $20–25 million for acquisitions, targeting both Indian and US firms.
- 02The company reported a 49.9% revenue growth in Q4 FY26, totaling ₹617.9 crore.
- 03Zaggle aims to enter the US market by the end of FY27, accelerating its timeline.
- 04Standalone revenue growth is projected at 25–30% for FY27, lower than FY26.
- 05The acquisition of DICE is expected to contribute ₹25 crore in revenue this year.
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Zaggle, a Hyderabad-based spend management platform, has announced plans to allocate $20–25 million for acquisitions over the next three to four quarters, with intentions to finalize a deal in the US as part of its global expansion strategy. Founder and Executive Chairman Raj P Narayanam indicated that while they plan to pursue 1-2 acquisitions in India, their focus is on establishing a presence in the US. The company is optimistic about closing a deal within the current fiscal year, although it remains flexible due to global uncertainties.
In its latest financial results for Q4 FY26, Zaggle reported a remarkable 49.9% year-on-year revenue growth, reaching ₹617.9 crore, and a 30.4% increase in profit after tax to ₹40.6 crore. For the full fiscal year, revenue grew 46.3% to ₹1,907.6 crore, with profit after tax rising 51.8% to ₹138.7 crore. However, Zaggle anticipates a slowdown in standalone revenue growth for FY27, projecting an increase of 25–30%, compared to the previous year's performance.
Zaggle is also focusing on its consumer-facing product, Zaggle Money, aiming to issue 1 lakh cards annually in the near term, with a long-term goal of 5 lakh cards. The recent acquisition of DICE is expected to generate ₹25 crore in revenue this year, contributing to the company's overall growth strategy.
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Zaggle's expansion and acquisition plans could lead to increased job opportunities in the tech and finance sectors, as well as enhanced spending options for consumers through its Zaggle Money cards.
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