Zaggle Prepaid Ocean Services Limited has announced a new investment in Unobanc Private Limited as it looks to strengthen its cross-border payment services. The company will buy a 19.9% stake in Unobanc for nearly ₹7.97 crore through a cash deal. The move is part of Zaggle’s plan to expand beyond corporate expense management and offer international payment, remittance, and forex services.
The investment comes at a time when Zaggle has reported record financial results. However, despite strong earnings, the company’s shares recently saw one of their biggest falls since its stock market listing, showing that investors still have concerns.
Zaggle Buys 19.9% Stake in Unobanc
Zaggle’s board has approved an investment of around ₹7.96-7.97 crore in Unobanc Private Limited, a wholly owned subsidiary of Hop Financial Solutions Limited, which operates under the moneyHOP brand. The deal will be completed in one or more stages over the next 90 days after the required agreements are signed. The company also confirmed that this is not a related-party transaction.
Unobanc provides technology for digital cross-border payments and international money transfers. One of the biggest reasons behind this investment is that Unobanc already has important regulatory approvals. It holds a Fully Fledged Money Changing (FFMC) licence and has also received an in-principle Authorised Dealer (AD) Category II licence from the Reserve Bank of India.
These approvals will help Zaggle quickly add forex and international payment services to its platform without building the required infrastructure from scratch. This is expected to help the company serve businesses that regularly deal with overseas payments and global transactions.
Unobanc has also shown steady business growth over the past few years. Its revenue increased from ₹14.40 crore in FY23 to ₹15.63 crore in FY24 and reached ₹17.40 crore in FY25. The company’s EBITDA also improved from ₹0.05 crore in FY24 to ₹1.37 crore in FY25.
Zaggle Reports Strong FY26 Financial Results
Zaggle delivered one of its best financial performances in FY26. In the fourth quarter, the company reported consolidated revenue of ₹618 crore, up 50% compared to the same period last year. Profit after tax (PAT) increased by 30.6% to ₹41 crore, while adjusted EBITDA rose 62.4% to ₹58.3 crore.
For the full financial year, Zaggle’s revenue reached between ₹1,853 crore and ₹1,908 crore, showing annual growth of around 46% to 50%. Net profit also increased to between ₹133 crore and ₹139 crore.
The company’s Propel Points business remained its biggest source of revenue. It contributed nearly 60% of Q4 revenue and more than 57% of total revenue for the year. Program fees also continued to support overall growth.
Looking ahead, Zaggle expects standalone revenue to grow by 25% to 30% in FY27, while consolidated revenue is expected to increase by around 40%. The company is also targeting a long-term EBITDA margin of 12% to 15%.
Apart from the Unobanc investment, Zaggle has been expanding through several acquisitions and partnerships. It recently partnered with US-based Mesh Payments to help businesses manage global corporate expenses. The company also acquired Rivpe Technology, which operates Rio Money, for ₹22 crore and plans to invest another ₹75 crore to expand its digital consumer credit business.
In recent years, Zaggle has also acquired Greenedge Enterprises and TaxSpanner, invested in Mobileware Technologies, and expanded its international payment network through GIFT City. These steps show that the company wants to build a complete fintech ecosystem instead of focusing only on corporate expense management.
Why Zaggle Shares Dropped
Even though Zaggle reported strong financial growth, its shares fell sharply after the quarterly results. The stock declined by as much as 27.15% over two trading sessions, including a nearly 19% fall in a single day. This was the company’s biggest drop since its IPO in September 2023.
One of the main reasons behind the fall was pressure on profit margins. While revenue increased strongly, EBITDA margin declined from 9.9% in the previous quarter to 9.4% in Q4. This raised concerns that the company’s rapid expansion could affect profitability in the short term.
Investors were also worried about the company’s cash flow. Zaggle reported negative operating cash flow because a large amount of its money is tied up in working capital, including prepaid cards and voucher inventory. The company’s return on equity (ROE), which remains around 7% to 10%, also stayed lower than many investors expected.
The selling pressure increased after Bhana Equity Advisors LLP sold more than 7 lakh shares through a bulk deal worth nearly ₹17 crore. At the same time, both foreign and domestic institutional investors reduced their holdings in the company over the past year.
Despite the recent fall in its share price, Zaggle continues to focus on long-term growth. The investment in Unobanc strengthens its cross-border payment business, while its recent acquisitions and partnerships are helping it build a wider financial services platform.
The coming quarters will be important for the company. Investors will be watching whether Zaggle can continue growing its business while improving profit margins and cash flow. If it succeeds, the company could strengthen its position in India’s fast-growing fintech and cross-border payments market.