Zaggle Prepaid Stock Jumps 7% on Order Book Update

The Indian stock market is a dynamic arena where investors’ moves often create ripples, influencing market sentiment and stock prices. One such influential figure is Ashish Kacholia, often dubbed the “Big Whale” of Dalal Street for his astute stock-picking abilities. Known for identifying multibagger stocks, Kacholia’s portfolio is closely watched by retail and institutional investors alike. Recently, one of his portfolio stocks, Zaggle Prepaid Ocean Services Limited, made headlines as its share price surged by over 7% following a significant order book update. This blog delves into the details of this development, exploring why Zaggle Prepaid’s stock jumped, the role of Kacholia’s investment, and the broader implications for investors.

In this 2500-word analysis, we’ll cover Zaggle’s business model, the specifics of the order book update, Ashish Kacholia’s investment strategy, the stock’s performance, and what this means for the fintech sector and investors. We’ll also examine market reactions, financial metrics, and future growth prospects, providing a comprehensive overview for those interested in this small-cap fintech gem.

Who is Ashish Kacholia?

Before diving into Zaggle’s story, it’s essential to understand the man behind the investment. Ashish Kacholia is a veteran investor with a reputation for spotting high-growth small and mid-cap stocks. Starting his career with Prime Securities and later working at Edelweiss, Kacholia founded his broking firm, Lucky Securities, in 1995. He also co-founded Hungama Digital with the late Rakesh Jhunjhunwala in 1999. Since 2003, Kacholia has focused on building his investment portfolio, which, as of March 2025, comprises 42 stocks valued at approximately ₹2,088 crore, according to Moneycontrol.

Kacholia’s investment philosophy centres on identifying companies with strong growth potential, robust fundamentals, and scalable business models. His portfolio includes diverse sectors like engineering, chemicals, fintech, and infrastructure, with notable holdings in companies like Shaily Engineering Plastics and Balu Forge Industries. His recent addition of Zaggle Prepaid to his portfolio has drawn significant attention, especially after the stock’s recent surge.

Zaggle Prepaid Ocean Services: A Fintech Powerhouse

Zaggle Prepaid Ocean Services Limited is a small-cap fintech company specialising in digital financial services, particularly in the realm of business expense management and prepaid card solutions. Founded with the mission to simplify financial processes, Zaggle offers a suite of products and services, including:

• Zaggle Zoyer Platform: A solution for automated business expense management, streamlining corporate spending.
• Zaggle Save: An employee expense management and benefits platform.
• Prepaid Card Solutions: Co-branded prepaid cards for corporates, SMES, and retail customers.
• Saas-Based Financial Tools: Innovative workflows for startups and large enterprises.

Zaggle serves a wide range of clients, including Mahindra, Blinkit, Can Fin Homes, BigBasket, and Hitachi, demonstrating its versatility across sectors. The company’s focus on automation and innovation has positioned it as a key player in India’s rapidly growing fintech ecosystem.

As of December 2024, Zaggle’s market capitalization stands at approximately ₹4,831.39 crore, according to Trade Brains. The company has shown impressive financial growth, with a 68.5% year-on-year (YoY) increase in revenue to ₹337 crore and a 33.3% YoY rise in net profit to ₹20 crore in Q3 FY25, as reported by Trade Brains.

The Order Book Update That Sparked the Surge

On May 8, 2025, Zaggle Prepaid’s stock price soared by over 7%, reaching ₹347.45 on the NSE, following a significant order book update. The catalyst was a strategic three-year channel partner agreement with Grant Thornton Bharat LLP, a leading professional services firm.

This partnership is a game-changer for Zaggle for several reasons:

1. Access to Premium Clients: Grant Thornton’s extensive network of corporate clients provides Zaggle with access to high-value enterprises, potentially increasing its order book and revenue streams.
2. Enhanced Credibility: Partnering with a globally recognised firm like Grant Thornton enhances Zaggle’s brand credibility, making it more attractive to other large clients.
3. Long-Term Revenue Potential: The three-year agreement ensures a stable pipeline of business, supporting Zaggle’s growth trajectory.

The market reacted swiftly to this news, with Zaggle’s stock locking in a 7% upper circuit, reflecting strong investor confidence in the company’s growth prospects. This surge aligns with Zaggle’s history of positive market responses to strategic partnerships, such as its earlier agreements with PhysicsWallah and GIFTCL.

Ashish Kacholia’s Stake in Zaggle

Ashish Kacholia’s investment in Zaggle has been a focal point for investors tracking his portfolio. As of December 2024, Kacholia holds 29,03,356 equity shares, representing a 2.16% stake in Zaggle Prepaid, according to Trade Brains. His investment in Zaggle began in the March 2025 quarter, when he acquired 1 lakh shares, as reported by Moneycontrol.

Kacholia’s decision to invest in Zaggle aligns with his strategy of backing companies with high growth potential in emerging sectors like fintech. Zaggle’s strong financial performance, innovative product offerings, and ability to secure high-profile partnerships likely caught his attention. His involvement has acted as a catalyst, drawing investor interest and contributing to the stock’s recent rally.

Market Performance and Investor Sentiment

Zaggle’s stock has been on a volatile yet upward trajectory in FY25. Despite a broader market correction, the stock has delivered significant returns, driven by its robust financials and strategic partnerships. The 7% surge on May 8, 2025, was not an isolated event but part of a pattern of positive market reactions to Zaggle’s order book updates. For instance, the stock jumped 5% in February 2025 after signing an agreement with PhysicsWallah, and it gained traction after partnering with GIFTCL.

Financial Metrics and Growth Prospects

Zaggle’s financial performance in FY25 underscores its growth potential. Key highlights from Q3 FY25 include:

• Revenue Growth: ₹337 crore, up 68.5% YoY.
• Net Profit Growth: ₹20 crore, up 33.3% YoY.
• Market Capitalisation: Approximately ₹4,831.39 crore.
• Order Book Strength: Strategic partnerships with Truecaller, PhysicsWallah, and Grant Thornton have bolstered its order book.

These metrics reflect Zaggle’s ability to capitalise on the growing demand for digital financial solutions in India. The company’s focus on automation, coupled with its expanding client base, positions it well for sustained growth. Additionally, India’s fintech sector is projected to grow at a CAGR of 31% from 2023 to 2028, according to industry reports, providing a favorable macro environment for Zaggle.

Implications for the Fintech Sector

Zaggle’s success has broader implications for India’s fintech ecosystem. The company’s ability to secure partnerships with global firms like Grant Thornton and domestic giants like Mahindra highlights the increasing adoption of fintech solutions across industries. This trend is likely to benefit other players in the sector, such as Paytm, Razorpay, and PhonePe, as corporates prioritise digital expense management and payment solutions.

Moreover, Zaggle’s stock surge underscores the market’s appetite for small-cap fintech stocks with strong fundamentals. Investors are increasingly looking beyond large-cap tech giants to identify high-growth opportunities in the small and mid-cap space, a trend that aligns with Kacholia’s investment philosophy.

Risks and Challenges

While Zaggle’s outlook is promising, investors should be mindful of potential risks:

1. Market Volatility: The broader market correction in March 2025 impacted several of Kacholia’s portfolio stocks, with 15 falling by at least 40%, according to The Economic Times. Zaggle, while resilient, is not immune to market fluctuations.
2. Capital Allocation Concerns: Some investors have criticised Zaggle’s management for underutilising its ₹800 crore cash reserve, as noted in Moneycontrol.
3. Competition: The fintech sector is highly competitive, with established players and new entrants vying for market share. Zaggle must continue to innovate to maintain its edge.
4. Regulatory Risks: Changes in RBI regulations or data privacy laws could impact Zaggle’s operations.

Investors should weigh these risks against Zaggle’s growth potential and conduct thorough due diligence before investing.

Why Investors Should Watch Zaggle

Zaggle Prepaid’s recent stock surge, driven by the Grant Thornton partnership, highlights its potential as a high-growth fintech stock. Here are key reasons why investors should keep Zaggle on their radar:

• Strong Financials: Consistent revenue and profit growth in FY25.
• Strategic Partnerships: Agreements with Truecaller, PhysicsWallah, and Grant Thornton strengthen its order book.
• Ashish Kacholia’s Backing: Kacholia’s 2.16% stake signals confidence in Zaggle’s long-term prospects.
• Sector Tailwinds: The booming Indian fintech market provides a favourable growth environment.
• Scalable Business Model: Zaggle’s SaaS and prepaid card solutions are scalable across industries.

For investors seeking exposure to the fintech sector, Zaggle offers a compelling opportunity, particularly for those comfortable with the volatility of small-cap stocks.

Lessons from Ashish Kacholia’s Investment Strategy

Ashish Kacholia’s investment in Zaggle provides valuable lessons for retail investors:

1. Focus on Fundamentals: Kacholia prioritises companies with strong revenue growth, profitability, and scalable models, as seen in his Zaggle investment.
2. Embrace Emerging Sectors: His bets on fintech, engineering, and chemicals reflect a forward-looking approach to high-growth industries.
3. Patience Pays: Kacholia’s multibagger stocks, like Shaily Engineering Plastics, demonstrate the value of holding quality stocks for the long term.
4. Diversify Smartly: With 42 stocks in his portfolio, Kacholia balances risk while maintaining exposure to high-potential companies.

Investors can apply these principles by researching companies like Zaggle, which combine innovation, financial strength, and market relevance.

Conclusion

The 7% surge in Zaggle Prepaid Ocean Services’ stock price following its partnership with Grant Thornton Bharat LLP underscores the company’s growing prominence in India’s fintech landscape. Backed by ace investor Ashish Kacholia, Zaggle is well-positioned to capitalise on the increasing demand for digital financial solutions. Its strong financial performance, strategic partnerships, and scalable business model make it a stock to watch for investors seeking high-growth opportunities.

However, investors must remain cautious of market volatility, competitive pressures, and internal challenges like capital allocation. By combining thorough research with a long-term perspective, investors can make informed decisions about Zaggle and similar small-cap fintech stocks.

As Ashish Kacholia’s portfolio continues to influence market trends, Zaggle Prepaid’s recent rally serves as a reminder of the potential rewards—and risks—of investing in high-growth companies. Whether you’re a seasoned investor or a newcomer, Zaggle’s story offers valuable insights into the dynamic world of Indian equities.