Archive · 21 Aug 2026
Vijay Kedia Bets Rs 33 Crore on Zaggle
Vijay Kedia’s investment firm bought a large number of shares in Zaggle after the stock reached a record low.
The purchase cost nearly Rs 33 crore.
Some investors think Zaggle could grow quickly because its sales have increased strongly over several years.
However, the company’s latest quarter showed weaker profits and lower margins.
Much of its revenue comes from rewards and cashback services rather than software fees.
Zaggle has also used more cash than it generated from its operations in recent years.
The company says recent costs came from acquisitions, business changes and salary increases.
Investors will watch the next quarter to see whether growth, margins and cash flow improve.
Kedia Securities bought 20 lakh Zaggle shares at an average Rs 164.72, investing nearly Rs 33 crore.
Zaggle’s June 2026-quarter revenue rose 27.4%, but operating margin fell to 7.3% and net profit dropped 32.9%.
Software platform fees contributed about 3% of quarterly revenue, while rewards and incentives generated roughly 59%.
Zaggle reported Rs 294 crore of consolidated profit from FY23 to FY26 but negative free cash flow totaling Rs 368 crore.
Foreign and domestic institutional ownership fell sharply, while public shareholding and the number of individual investors increased.
- Who
- Kedia Securities, associated with Vijay Kedia, bought shares in Zaggle Prepaid Ocean Services; Ashish Kacholia remains a disclosed shareholder.
- What
- Kedia Securities purchased 20 lakh shares, or about 1.48% of Zaggle, for nearly Rs 33 crore.
- When
- The bulk purchase occurred on 18 August 2026; Zaggle’s shares closed at Rs 198 on 20 August 2026.
- Where
- The transaction involved Zaggle Prepaid Ocean Services, an India-listed fintech company.
- Why
- The purchase appears to reflect a view that Zaggle’s sharp valuation decline may have created value despite concerns about margins and cash generation.
Value and Growth Case
Risk and Execution Case
Share-price valuation
Value and Growth Case
Zaggle’s share price has fallen sharply from its 52-week high and now trades near the original IPO price, which may attract value-focused investors.
Risk and Execution Case
The lower price may reflect the company’s missed growth and margin guidance, rather than a temporary market overreaction.
Business growth
Value and Growth Case
Standalone sales rose from Rs 240 crore in FY21 to Rs 1,853 crore in FY26, representing a five-year compound annual growth rate of about 50%.
Risk and Execution Case
The latest quarter’s revenue growth slowed to 27.4%, while operating margin fell to 7.3% from 9.2% and profit declined.
Quality of earnings
Value and Growth Case
Management attributes the weak quarter to acquisition and integration costs, with Dice Enterprises revenue expected from the September quarter.
Risk and Execution Case
Zaggle generated negative free cash flow in every year from FY23 to FY26, raising questions about whether reported profits can convert into cash.
- Buyer
- Kedia Securities
- Purchase
- 20 lakh shares at an average Rs 164.72
- Stake acquired
- Approximately 1.48% of Zaggle
- June 2026 revenue
- Rs 423 crore, up 27.4% year over year
- June 2026 net profit
- Rs 17.5 crore, down 32.9% year over year
- Four-year free cash flow
- Negative Rs 368 crore cumulatively from FY23 to FY26
- Market capitalization
- Approximately Rs 2,657 crore as of the article’s valuation discussion