Zaggle to provide employee expense management to Blue Star

Zaggle to provide employee expense management to Blue Star

Shares of Zaggle Prepaid Ocean Services surged over 4% following the fintech company's announcement of a partnership with Blue Star Limited to provide its Zaggle Save employee expense management platform to Blue Star employees for a one-year period. The stock initially rose 4.2% to ₹362 intraday on September 5, 2024, before settling at ₹355.15, reflecting a 2.2% gain for the day. The agreement aligns with Zaggle's focus on enterprise spend management solutions, which include tax-saving benefits, corporate gifting, and rewards programs according to reports.

Zaggle has expanded its client base in recent months, securing partnerships with major corporations such as Hero MotoCorp and Visa for its expense management and prepaid card services. Additionally, the company partnered with the Open Network for Digital Commerce (ONDC) in July 2024 to issue prepaid payment instruments, further diversifying its offerings. Financially, Zaggle reported a 716% year-on-year increase in profit after tax (PAT) to ₹16.73 crore in Q1 FY25, alongside an 113% rise in operating revenue to ₹252.2 crore during the same period.

Blue Star, a leading air conditioning and refrigeration company with an annual revenue exceeding ₹9,685 crore, will integrate Zaggle Save to streamline employee expense management. The partnership underscores growing demand for digital solutions in corporate expense optimization, a sector Zaggle has targeted since its 2011 founding.