Fintech Giant Zaggle Secures Controlling Interest in EffiaSoft

In a strategic move to bolster its financial technology ecosystem, Zaggle Prepaid Ocean Services Ltd has acquired a 51% controlling stake in Hyderabad-based billing software provider EffiaSoft Private Ltd. The deal, valued at over Rs 41 crore, marks a significant step in Zaggle's expansion strategy.

Deal Details and Strategic Implications

The acquisition involves the purchase of 1,67,128 equity shares, representing a 45.33% stake, from existing shareholders and founders Koushik Shee and Akula Krishna Rao for Rs 36.72 crore. An additional 5.67% stake is under consideration, with the mode of acquisition yet to be finalized.

EffiaSoft, founded by BITS Pilani alumni, boasts a team of 220 employees and projects revenues of around Rs 27 crore for the current fiscal year. The company's expertise in product development and software solutions is expected to enhance Zaggle's operational efficiency and digital transformation efforts in the fintech sector.

Zaggle's Growth Trajectory

This acquisition follows Zaggle's recent investment in digital payments player Mobileware Technologies, underscoring its aggressive growth strategy. With a recent Rs 595 crore raise via qualified institutional placement, Zaggle is poised for further expansion in the fintech space.