Software-as-a-service company Zaggle Prepaid Ocean Services Ltd has agreed to acquire a majority stake in Hyderabad-based enterprise software company EffiaSoft Pvt Ltd.
As part of the deal, the company's board has approved the acquisition of a 45.3% stake in EffiaSoft from existing shareholders Koushik Shee and Krishna Rao Akula for Rs 36.7 crore. The company will purchase an additional 5.67% stake from the same shareholders for Rs 4.6 crore, either in cash or stock, it said in a stock exchange filing.
Founded in 2012 by Shee, EffiaSoft is a product development and engineering company that offers enterprise software solutions. Its flagship product, JustBilling, is a point-of-sale software product used by over 1.5 lakh subscribers and 300 merchant partners. The company also offers cruise management software.
EffiaSoft’s client base spans India, Singapore, Europe, and the United States. It clocked revenue of Rs 18.94 crore for 2023-24, up from Rs 13.43 crore the year before. For 2024-25, its revenue is likely to be Rs 24.67 crore, according to provisional numbers, Zaggle said. This means the deal values EffiaSoft around 3.3x its FY25 revenue.
Zaggle said that the latest acquisition will help enhance its portfolio of offerings. “By integrating EffiaSoft's advanced technology solutions with our existing platforms, we aim to offer a more seamless, efficient, and scalable spend management and payment experience,” Zaggle founder and executive chairman Raj P Narayanam said.
Earlier this week, the company announced that it increased its stake in Mobileware Technologies to 38.3%. Mobileware provides banks, financial services, NBFCs, and other financial institutions with banking and payment services. Zaggle said the move reflects its commitment to solidify its position in the software-as-a-service segment.
These transactions come after Narayanam told VCCircle in January that the company had identified three acquisition targets. The company was looking to make acquisitions in segments like merchant card software, FASTag, and account receivables, he said. Zaggle expected to close these deals by March 2026.
Since the company’s initial public offering in September 2023, Zaggle has gone on an acquisition spree. In September 2024, the company acquired a 98.3% stake in Span Across IT Solutions for Rs 32 crore to help enter a new segment of employee-related businesses. It had acquired a 26% stake in Mobileware for Rs 15.6 crore.
The company's net profit rose 33% year-on-year to Rs 20.2 crore in the October-December quarter of 2024-25.
