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The journey towards the IPO was described as “brutal and tiring” by Narayanam but emphasized that it marked a new beginning for the company rather than an end point. The funds raised will be utilized for customer acquisition and retention, technology and product development, repayment of certain borrowings, and general corporate purposes. Narayanam also hinted at potential “right-sized acquisitions” in the future.
Zaggle’s story began in 2012 when Narayanam identified a gap in employee welfare in the Indian market. Despite corporations adopting rewards and recognition processes, he believed the paper-first approach was insufficient. This observation led to Zaggle’s inception with the launch of a network-agnostic card that functioned similarly to a Visa (NYSE:V) debit or credit card.
Over the years, customer feedback has shaped the evolution of Zaggle’s offerings. From rewards and recognition, the company expanded into employee engagement, gifting, spends management, and accounts payable. In response to customer needs for customizable solutions, Zaggle launched Zinger in 2016 – a multi-wallet product for managing delivery of coupons to dedicated wallets.
In recent years, Zaggle has ventured into areas such as accounts payable with a product named Zoyer that helps companies automate payments to vendors and customers. As of March 2023, the company’s SaaS subscription business accounted for INR 20 Cr of revenue, while INR 170 Cr came from programme fees, which is the commission that Zaggle charges when its cards are used by employees.
Zaggle’s next major focus is a product around credit cards aimed at filling another gap within expense management for new-age companies, including startups. Post-IPO, the company is also considering international expansion, with North America and the Middle East being primary targets.
Despite the excitement around the IPO, Narayanam acknowledged that it will bring changes to Zaggle and its employees, emphasizing the need for continuous growth and adaptation to meet enterprise needs. However, he assured public investors that the company’s ‘What You See Is What You Get’ approach will remain unchanged.
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