Zaggle Gains on Five Year Fleet Card Deal With HPCL

Shares of Zaggle Prepaid touched a day high of Rs 213.82 on Wednesday, gaining after a five year fleet card deal with HPCL.

Here is what the deal is about. Zaggle will now support HPCL’s fleet card programme, called Drive Track Plus.

In simple terms, when Zaggle’s corporate, fleet and retail customers buy fuel through this programme, they will earn loyalty reward points, funded by HPCL.

Zaggle’s technology platform will be integrated into HPCL’s system to make this work. The company has not put a number on the deal just yet.

That is because the actual value will depend on how many users sign up and how much they spend on fuel over the five year period, so it is genuinely hard to estimate right now.

Zaggle also confirmed that this is not a related party transaction. Neither the company’s promoters nor promoter group companies have any stake or interest in HPCL. This is not the only deal Zaggle has announced recently.

Just a day earlier, the company signed a separate agreement with APAC Financial Services to offer its enterprise software products, including its spend management and employee expense platforms.

Like the HPCL deal, the value of that contract also depends on user adoption and spending, so no fixed figure was disclosed there either.

Zaggle had a strong March quarter as well, with consolidated net profit jumping over 30% to Rs 40.60 crore, while revenue grew nearly 50% to Rs 671.91 crore.

The stock closed at Rs 210.14 on the NSE on Wednesday, up 1.61% for the day.

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