Zaggle Prepaid Ocean Services Limited

Investor Presentation
October 2023 – Q1FY24
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Zaggle Prepaid Ocean Services Limited
(the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to
purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment
whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed
information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the
Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy,
completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain
all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is
expressly excluded.

This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability,
which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking
statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations
in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to
attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations,
government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not
undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any
forward looking statements made from time to time by or on behalf of the Company.

®
2
From the Founder’s desk…

“We are delighted to see a stupendous response to our IPO. We express our gratitude to all the shareholders for
reposing their faith in us. We extend our congratulations to every stakeholder of the company, i.e., employees,
customers, business partners and bankers who were part of our IPO journey.

During Q1FY24, we delivered an operational revenue of ₹ 1,185 mn with a strong 34% YoY growth. This increase is
attributed to our recent endeavors, notably the introduction of corporate credit cards and launch of our vendor
management platform – Zoyer. Further, this growth was fueled by customer base expansion and cross-selling
initiatives.

Our Adjusted EBITDA (before ESOP expenses) grew by 27% to ₹ 138 Mn with 11.7% margin. Over the years, the
proportion of our Q1 revenues in relation to the total annual revenues is close to 16% and Q2 is around 24%.
Accordingly, with operating leverage coming into play historically our margin profiles see an improvement in H2 v/s
H1. Going forward, we expect similar trend to continue.

Post IPO, with a stronger balance sheet position, we have reduced our borrowings and expect significantly lower
finance costs from Q3FY24 onwards.
Raj P Narayanam Some of our recently noteworthy developments include our contract with BOB Financial Solutions Limited for
Founder and Executive Implementing Commercial card Onboarding & value-added services platform and launch of the Zaggle Yes Bank
Chairman Corporate Credit Card, powered by Zaggle Zatix – a spend analytics platform that allows corporates to streamline
business and employee expenses, budget better and negotiate favorable supplier terms.

India is at the forefront of the fintech and digital revolution, and there are very strong tailwinds that are propelling
growth of the digital payments industry. This combined with our unique positioning in the spend management
space gives us a significant competitive advantage.

Our expectation of revenue growth for this fiscal year is in the range of 40% to 50%, with an Adjusted EBITDA Margin
(before ESOP expense) between 11% and 13%. Further, we expect the total ESOP expense to be close to ₹ 200 mn
in the fiscal year.”

®
3
 ®

Performance Highlights
Financial highlights
Revenue from operations (₹ Mn) Gross Profit (₹ Mn)

33.7% 9.7%

1,185 606
553
886

Q1FY23 Q1FY24 Q1FY23 Q1FY24

Adjusted EBITDA (₹ Mn) Reported EBITDA (₹ Mn) Cash PAT (₹ Mn)

PAT + Depreciation & Amortization + ESOP Expense

after ESOP
27.4% expense of 38.7%
-26.5% ₹58.44 Mn in
138 108 Q1FY24 99

108
80 71

Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24

®
5
Profit and loss statement
(₹ Million, unless stated otherwise) Q1FY24 Q1FY23 YoY FY23

Revenue from operations 1,184.79 886.23 33.7% 5,534.60

Gross Profit 606.19 522.72 16.0% 2,328.37
Gross Profit Margin 51.16% 58.98% 42.07% • 34% YoY growth in the topline driven by:
Employee benefits expense 81.02 61.90 291.70 o Growth in corporate credit cards business
Incentive and cash back 249.85 254.81 1,002.01 o Launch of new product, i.e., Zoyer
Other Expenses 137.32 97.73 409.57 o Customer base expansion
Adjusted EBITDA 138.00 108.28 27.4% 625.09 • Drop in gross margin was primarily led by
Adjusted EBITDA Margin 11.65% 12.22% 11.29% change in product mix. On the other hand,
ESOP Cost 58.44 - 144.13 Incentive and cash back expense as a
Reported EBITDA 79.56 108.28 -26.5% 480.96 percentage of total revenue has been reducing
Reported EBITDA Margin 6.72% 12.22% 8.69% over the quarters and witnessed 7% decline vis-
Other Income 14.56 0.38 11.15 à-vis Q1FY23. This neutralized the impact of drop
Depreciation & amortisation (DA) 20.05 8.43 61.99 in gross margin
EBIT 74.07 100.23 -26.1% 430.12 • The company has added employees to support
EBIT Margin 6.25% 11.31% 7.77% future growth of the business
Finance Cost 44.13 14.40 113.77 • Total ESOP expense in FY24 is expected to be
Profit before Tax 29.94 85.83 316.35 close to ₹ 200 mn
Tax 9.39 22.83 87.34 • Surge in finance costs was due to high-cost
Profit After Tax 20.55 63.00 -67.4% 229.01 debt. Post the IPO, the company has repaid ₹
PAT Margin 1.73% 7.11% 4.14% 470 mn of borrowings which will result in lower
Cash PAT (PAT+DA+ESOP) 99.04 71.43 38.7% 435.13 finance cost from H2
EPS - Basic (₹) 0.24 0.68 2.48
EPS – Diluted (₹) 0.24 0.68 2.46

®
6
Key operational performance indicators
Total customers catered to (number) Aggregate users on the platform (million)

2,411 2.27
36.7% 22.2%
Key
Performance 2,596 2.42
KPIs
Indicators 1.98
1,899

Q1FY23 Q1FY24 FY24 Q1FY23 Q1FY24 FY24

Platform fee / SaaS fee / service fee (1) Program fees (2) Propel platform revenue / gift cards (3)

1,695 3,598
242 17.8% 54.0%
7.5%
Revenue 71
480 634
Mix 66 408
(₹ Mn) 412

Q1FY23 Q1FY24 FY24 Q1FY23 Q1FY24 FY24

Q1FY23 Q1FY24 FY24

® Note: (1) All fee income received including the fixed monthly subscription fees paid by Customers on a per User basis and any one-time setup fees and any other fees levied, (2) The sum of (i) interchange fees earned on the spend that Users make on the cards; (ii) any
other income which we receive from the Preferred Banking Partners and Payment Networks; and (iii) inactivity fees which are earned on the balance amount left on the cards, (3) Revenue received from Customers for issuing reward points (Propel points) to Customers’ 7
employees and channel partners,
Quarterly revenue mix

Q3 & Q4 are higher revenue quarters in the business

Contribution to
annual 16.0% 23.5% 26.7% 33.8% • Higher transaction volumes
revenues associated with the festive
season in the third quarter of
1,873
each Fiscal and annual sales
events such as the festive
1,475 season sales
1,300 • Furthermore, company also
1,185
experiences an increase in
Revenue from transaction volumes in the
886
operations (₹ fourth quarter of each Fiscal,
Mn) with users transacting to
exhaust any pending balance
on their cards before the end
of a financial year

Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24

33.7% YoY
growth
®
8
 ®

What we do
Zaggle: Placed at the intersection of SaaS and Fintech

Headquartered (1) at Hyderabad, Telangana

SaaS Fintech
273 employees (2)

`
Profitable 11.29% FY23 Adjusted EBITDA
Margin (3)

50 Mn+ co-branded prepaid cards (4)

Zaggle’s Space: Intersection Point

Strong financial track FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23
record 2,399.66 3,712.55 5,534.60 276.27 598.54 625.09 213.76 440.18 435.13
(₹ Mn) Adjusted EBITDA Cash PAT
Revenue from Operations

Key operating metrics as of 1,832 579 2,411 2.27 Mn 1.54%

and for the year ended Corporate SMB Total Active Churn (8)
March 31, 2023 Accounts (5) Accounts (6) Accounts Users (7)

® Source: Frost & Sullivan Report. Note: (1) Registered Office (2) As of March 31, 2023 (3) Adjusted EBITDA before ESOP expenses (4) Since the inception of business (5) Organizations
with more than 250 Users (6) Organizations with 250 or fewer Users (7) Employees, channel partners, and customers of Customers (8) Corporates and SMB customers discontinuing their 10
subscription and other services on the platform
Key strengths

Differentiated SaaS-based fintech platform

In-house developed technology with strong network effect

Business model with diversified revenue streams across products

Diversified customer relationships across sectors along with preferred

banking and merchant partnerships

Seasoned management team and board

®
11
Differentiated SaaS-based fintech platform

Offering a combination of payment instruments, mobile application and API integrations

Omnichannel technology offering

Tata Securities

VISA Mobile app to Dashboard to manage

powered cards manage spends Partners reporting & analytics

®
The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only
12
… Strong network effect
Key Partners
Banking Partners

Network Partners

VAS Partners Tata Securities

Partners

Banking licenses &

Pmt. instrument
Resell Zaggle
Sell software
Monetize GTV Users / deals
Comprehensive
Monetization
Businesses User base Merchants
Software / users

monetization
Direct
Spend

Employees
/Users
®
The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only
13
Zaggle: Key product and service offerings

1 2 3
Propel Save Zoyer

• Channel rewards and • Expense Management • Integrated data-driven

incentives business spend
• Employee Reimbursements
management platform with
• Employee rewards and
• Employee tax benefits embedded finance
recognition
capabilities

®
14
Diversified revenue streams across products

SOFTWARE FEES CARD TRANSACTION INCOME

CARD TRANSACTION
SOFTWARE FEES PROPEL POINTS
INCOME

SOFTWARE FEES CARD TRANSACTION INCOME

®
15
Seasoned management team and board
Raj P Narayanam Avinash Ramesh Godkhindi
Founder and Executive Chairman Managing Director and CEO
Leadership

• Founded Zaggle in 2011 with a vision to simplify corporate spends • Leading Zaggle’s growth since 2012
• Completed post-graduate diploma in business management with specialization in • Holds a bachelor’s degree in engineering from Bangalore University, Bengaluru, and
finance from the FORE School of Management - New Delhi a master’s degree in business administration from the University of Chicago, Chicago
• He has experience in the technology and fintech industry • Has served on the board of the company since 2012
• Has made varying levels of investments in certain companies at different points in • Awarded the “Inspiring CEO” award by the Economic Times in 2022
time • He has experience in the banking industry
• Has served on the board of the company since 2012 • Prior to joining Zaggle, Avinash worked with Citibank in India

Arun Vijaykumar Gupta Aravamudan Krishna Kumar Abhay Deshpande Raosaheb Prerna Tandon
Independent Director
Board of Directors

Non-Executive Director Independent Director Independent Director

• Holds a bachelor’s degree in arts and economics • Holds a bachelor’s degree in computer science and • Holds a master’s degree in business
• Holds a bachelor’s degree in
engineering from the Dr. Babasaheb Ambedkar administration from the Panjab University,
commerce from the P.D. Lion’s College (honors course) from the University of Delhi
Marathwada University, Aurangabad, Maharashtra Chandigarh
of Commerce and Economics, • Certified associate of the Indian Institute of Bankers
• He has experience in the IT industry • She worked as the Vice President – operations
University of Bombay • He retired in 2014 from State Bank of India as MD
• Directorships: Rapidue Technologies, Payswiff at Infosys BPO Limited & Vice President –
• Directorships: Route Mobile, Protinus • Directorships: SBI Payment Services, MTAR Technologies,
Technologies, Recykal Foundation, Anubhuti Welfare productivity & digitization leader at Genpact
Fashion Networking TVS Wealth, Delphi TVS Technologies, Sathguru Catalyser,
Foundation India
Ecofrost Technologies, Suraksha ARC, Ecozen Solutions
• Directorship: Nirmal Bot Limited

Venkata Aditya Kumar Grandhi

Management

Hari Priya
Chief Financial Officer Company Secretary & Compliance Officer

• Member of The Institute of Chartered Accountants of India, New Delhi • Member of the Institute of Company Secretaries of India, New Delhi and bachelor’s
• He has experience in the financial services industry degree in law from Osmania University,University
• Prior to joining Zaggle, he worked at Spandana Sphoorty Financial Limited as Vice President • Prior to joining Zaggle, she worked at Spandana Sphoorty, Gayatri Projects and Axis
Investor Relations-Finance Clinicals

®
16
Zaggle in a nutshell

Seasoned management team Seasoned Multi-product SaaS-based platform with a

and board team strategy comprehensive product stack

Robust
Technology
Revenues from operations have financial In-house technology with strong
and
grown at 49.08% in the year metrics network effect
network
ended March 31, 2023, with an
EBITDA margin of 8.69%

Overall estimated market

Customer churn rate at 1.54% in
Consistent revenue (2027) for Payments in
customer Large India : ₹ 1750+ Bn
the year ended March 31, 2023 addressable
Retention
market

Customer acquisition and Low CAC and Ecosystem- Business model with diverse
retention costs of 18.07% of total retention costs based approach sources of revenue across SaaS
revenue and fintech

®
Note: FY: Financial Year 17
 ®

Annexure
Historical Financial and operating metrics
Corporate customers Aggregate users (1) (Mn) Revenue from operations (₹ Mn)

2.27 5,534.60
2,411
1.72
1,753 3,712.55

2,399.66
1,092 0.90

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

Adjusted EBITDA & EBITDA margin(₹ Mn) Reported EBITDA & EBITDA margin (₹ Mn) Cash PAT & Cash PAT margin (₹ Mn)
after ESOP
CAGR: 50.42% CAGR: 31.94% expense of CAGR: 42.67%
625.09 ₹144.13 in
598.54 598.54 FY23

440.18 435.13
480.96

276.27 276.27
16.12% 213.76
16.12% 11.86%
11.51% 8.69% 7.86%
11.51% 11.29% 8.91%

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

®
Note: (1) Total number of users (Employees, channel partners, and customers of Customers) served by the company, FY: As of and for the year ended March 31 19
Historical Balance sheet
Particulars FY23 FY22 FY21 Particulars FY23 FY22 FY21

ASSETS EQUITY AND LIABILITIES

Non-current assets Equity
Property, plant and equipment 23.48 19.77 9.51 Equity share capital 92.22 1.80 1.80
Right-of-use assets 196.73 55.15 36.75 Other equity 395.29 -37.38 -457.31
Intangible assets 68.90 44.29 26.97 Total equity 487.51 -35.58 -455.51
Liabilities
Intangible asset under development 108.68 15.00 0
Non-current liabilities
Financial assets
Financial liabilities
(i) Investments 4.85 0 0
(i) Borrowings 513.29 483.27 376.92
(ii) Other financial assets 14.69 7.3 4.13 (ia) Lease liabilities 158.65 51.04 31.89
Other non-current assets 29.77 21.38 0 Provisions 11.43 7.22 5.66
Income-tax assets (net) 119.01 123.59 74.70 Total non-current liabilities 683.37 541.53 414.47
Deferred tax assets (net) 23.1 24.59 106.88 Current liabilities
Total non-current assets 589.21 311.07 258.94 Financial liabilities
Current assets (i) Borrowings 697.44 161.45 313.92
Inventories 0.97 1.12 2.69 (ia) Lease liabilities 44.10 7.35 7.85
Financial assets (ii) Trade payables
(i) Investments 12.32 0 0 - Total outstanding dues of
micro and small enterprises 9.63 7.77 0.08
(ii) Trade receivables 1026.59 429.51 226.81
(iii) Cash and cash equivalents 195.89 7.11 27.89 - Total outstanding dues of
creditors other than micro and 82.56 99.58 190.96
(iv) Bank balances other than (iii) small enterprises
above 30.07 29.00 5.00
Provisions 0.22 0.14 0.11
(iv) Other financial assets 0 0 0 Other current liabilities 294.96 144.29 148.92
(v) Other financial assets 1.15 0 0 Current tax liabilities (net) 47.80 0 0
Other current assets 491.39 148.72 99.47 Total current liabilities 1,176.71 420.58 661.84
Total current assets 1,758.38 615.46 361.86 Total liabilities 1,860.08 962.11 1,076.31
Total assets 2,347.59 926.53 620.8 Total equity and liabilities 2,347.59 926.53 620.8
The Parent Company has incorporated a wholly owned subsidiary named as Zaggle Technologies Limited (“ZTL”), a private Company in the UK on January 12, 2023, as a subscriber to the
memorandum. ZTL had allotted 1 equity share of GBP 1 to the Company upon incorporation, such shares remained unpaid as of March 31, 2023. ZTL had not commenced any business, operations or
activities since its incorporation and there were no transactions during the period January 12, 2023, to March 31, 2023.
The Parent Company’s Board of Directors on its meeting held on August 26, 2023 has decided to request ZTL to apply to the registrar of companies through its director, to strike off its name off the
® register in compliance with applicable provisions of the UK laws. Accordingly, the strike-off application was duly made by ZTL on August 26, 2023.
Considering above the Company has prepared its first consolidated financial statement for the year ended March 31, 2023. 20
Historical Profit and loss statement
Particulars (₹ Million, unless stated otherwise) FY23 FY22 FY21
Revenue from operations 5,534.60 3,712.55 2,399.66
Gross Profit 2,328.37 2,259.69 2,087.87
Gross Profit Margin 42.07% 60.87% 87.01%
Employee benefits expense 291.70 154.30 124.60
Incentive and cash back 1,002.01 1,176.43 1,380.31
Other Expenses 409.57 330.42 306.69
Adjusted EBITDA 625.09 598.54 276.27
Adjusted EBITDA Margin 11.29% 16.12% 11.51%
ESOP Cost 144.13 - -
Reported EBITDA 480.96 598.54 276.27
Reported EBITDA Margin 8.69% 16.12% 11.51%
Other Income 11.15 4.09 3.27
Depreciation 61.99 20.97 20.46
EBIT 430.12 581.66 259.08
EBIT Margin 7.77% 15.67% 10.80%
Finance Cost 113.77 69.88 77.10
Profit before Tax 316.35 511.78 181.98
Tax 87.34 92.57 (11.32)
Profit After Tax 229.01 419.21 193.30
PAT Margin 4.14% 11.29% 8.06%
Cash PAT (PAT+DA+ESOP) 435.13 440.18 213.76
EPS - Basic (₹) 2.48 4.57 2.11
EPS – Diluted (₹) 2.46 4.57 2.11
The Parent Company has incorporated a wholly owned subsidiary named as Zaggle Technologies Limited (“ZTL”), a private Company in the UK on January 12, 2023, as a subscriber to the memorandum. ZTL
had allotted 1 equity share of GBP 1 to the Company upon incorporation, such shares remained unpaid as of March 31, 2023. ZTL had not commenced any business, operations or activities since its
incorporation and there were no transactions during the period January 12, 2023, to March 31, 2023.
® The Parent Company’s Board of Directors on its meeting held on August 26, 2023 has decided to request ZTL to apply to the registrar of companies through its director, to strike off its name off the register in
compliance with applicable provisions of the UK laws. Accordingly, the strike-off application was duly made by ZTL on August 26, 2023. 21
Considering above the Company has prepared its first consolidated financial statement for the year ended March 31, 2023.
Key awards, accreditations and recognitions

Global Banking & Finance

Award: Excellence in Innovation
Business Spend Management
Software India 2023

10th Payments Industry Awards: BW Businessworld Festival of Govt of Telangana: Recognized India Startup Festival:
Best B2B Payment Solution Fintech Conclave Awards: for building a robust and “Certificate of Appreciation” by
Provider, 2023 Winner – Best Payments Solutions sustainable SaaS and fintech Sri Sathya Sai Grama
of the Year, 2023 business, 2022 Muddenahalli, 2022

BW Businessworld Festival of
Fintech Conclave Awards:
Best Digital Card, 2021

World HRD Congress and Human Excellence Award: India Digital Awards: Best Certiva: Certificate of
Awards: “Best Employee Awarded the “Best Employee Prepaid Card Solution, 2019 compliance with ‘ISO/IEC
Engagement Award in B2B Engagement Program (Multi 27001:2013’
Sector”, 2021 Industry)”, 2021

Marksmen Daily: Most Preferred

Workplace, 2022

®
22
 ®

Thank you
Company
Zaggle Prepaid Ocean Services Limited
CIN: U65999TG2011PLC074795
Hari Priya, Company Secretary & Compliance Officer
Email id: Investor.Relations@zaggle.in

Investor Relations Advisor

Strategic Growth Advisors Pvt Ltd.
CIN: U74140MH2010PTC204285
Devika Shah / Shikha Puri
Email id: devika.shah@sgapl.net /
shikha.puri@sgapl.net
Tel No: +91 9920764659 / +91 9819282743