The proposed entity, to be called Zaggle Holding Limited or another name approved by the relevant authorities, will be 100% owned by Zaggle Prepaid Ocean Services.
The subsidiary will undertake businesses related to fintech, software-as-a-service (SaaS) and artificial intelligence, while also serving as a holding company for investments in group companies and third-party entities, depending on future business requirements.
Zaggle said the proposed structure will support its international plans and provide a platform for potential strategic investments that complement its existing capabilities.
“The proposed entity will provide a platform to pursue opportunities across FinTech, SaaS and AI and create a structure for strategic investments,” Founder and Executive Chairman Dr Raj P Narayanam said.
The incorporation process will now be initiated and will be subject to applicable approvals and regulatory requirements.
Zoyer seen contributing up to half of revenue
The proposed Abu Dhabi entity comes as Zaggle looks to increase the contribution of its software-led businesses.
On September 28, Narayanam said the company’s Zoyer spend management platform could contribute 45-50% of revenue going forward as it adds enterprise clients and expands its software offerings.
He also said Zaggle’s partnership with Bandhan AMC would support its strategy of combining software with payment solutions. The company expects margins to improve and is targeting positive free cash flow over the next 18-24 months.
Shares of Zaggle Prepaid Ocean Services closed 1.27% higher at ₹172.49 on October 6.
Also Read: Exclusive | Govt defers Mumbai airport’s plan to cut 33% international operations at T2