Listed fintech SaaS startup Zaggle has acquired a 26% stake in Mobileware Technologies (now known as ‘86400’) for INR 15.6 Cr.
Founded in 2010, 86400 provides digital banking and fintech solutions. The company helps banks and financial institutions improve their digital services, especially in rural and urban areas.
86400 has an API banking platform named TransXT (known as ‘Bank In A Box’) with which it facilitates digital transactions and provides its payment services to more than 80 banks and 20 fintech companies.
With the acquisition, Zaggle is eying to tap into 86400’s expertise and infrastructure to improve its payment offerings.
“This strategic investment will not only strengthen our offerings but also create new opportunities to co-develop advanced solutions that place payments at the core of our clients’ business needs,” Zaggle founder and executive chairman Raj Narayanam said.
Zaggle is also aiming to develop and co-create new solutions for lending, credit and card management services.
It is pertinent to note that post acquisition, 84600 will continue to operate independently with all of its employees.
The development comes at a time when Zaggle has been signing new partnerships and expanding its services. Earlier this year, it partnered with Open Network for Digital Commerce (ONDC) to facilitate issuance of prepaid payment instruments to the latter’s customers.
It also inked a pact with Hero MotoCorp to offer the auto giant its employee expense management platform – Zaggle Save.
Zaggle’s net profit soared 716% year-on-year (YoY) to INR 16.73 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25). Revenue from operations rose 113% YoY to INR 252.2 Cr during the quarter.
Zaggle made its public market debut in September last year, with its shares listing on the BSE at INR 164. The stock has surged since then and ended today’s trading session 2.54% lower at INR 431.90 on the BSE.
