“We have set aside $20–25 million for acquisitions. The plan is to do 1-2 in India, but we want to definitely do one in the US and are in early stage talks with a company. We’re hoping to close the deal in this fiscal itself, but we’re keeping timelines flexible given the global uncertainties,” founder & executive chairman Raj P Narayanam told ET, adding that they’re targeting firms in the spend management and payments ecosystem, particularly on the rewards and loyalty side.
Also Read: Zaggle Q4 profit rises 30% to Rs 41 crore; revenue up at Rs 618 crore
The acquisition push comes after a busy year of inorganic expansion for Zaggle, which has completed multiple deals over the past year, including the acquisition of Rio.Money assets and the recently restructured DICE transaction.
This comes on the back of the company looking to foray into the US by the end of this fiscal, and is banking on the inorganic route to speed up its plans.
“Our US expansion is moving at a rapid pace. We now expect to kickstart it by FY-end instead of the earlier June 2026 timeline,” he said.
The comments came alongside Zaggle’s Q4 FY26 results, where the company reported revenue growth of 49.9% year-on-year at Rs 617.9 crore, while profit after tax rose 30.4% to Rs 40.6 crore.Also Read: Zaggle cuts Dice deal from Rs 123 crore to Rs 68 crore in an asset-IP only deal
For the full year FY26, revenue grew 46.3% to Rs 1,907.6 crore and PAT increased 51.8% to Rs 138.7 crore.
Despite the strong FY26 performance, Zaggle guided for standalone revenue growth of 25–30% in FY27, lower than the pace seen this year, while consolidated growth is expected to be around 40%.
Addressing concerns around moderation in organic growth, Narayanam said the company’s larger revenue base was naturally impacting percentage growth rates.
“The base is becoming larger. Adding another ₹750–800 crore on this scale is still significant,” he said.
The company is also betting on Zaggle Money, its consumer-facing cards and spends business, as a long-term growth lever. Narayanam said the company currently issues around 36,000 cards annually and is targeting 1 lakh cards a year in the near term, with ambitions to scale to 5 lakh cards annually over the next two to three years. Zaggle is targeting Rs 500 crore in net revenue from spends over the next four years.
A key part of Zaggle’s growth strategy also hinges on its latest acquistion DICE, whose contracts and assets were acquired by the company last week.
Narayanam said DICE is expected to contribute around Rs 25 crore in revenue this year, Rs 50–55 crore next year, and Rs 125–129 crore in India by FY29, adding that the DICE founders will not join Zaggle as part of the transaction, with the company only acquiring the underlying assets and contracts.
