In a move that signals its deepening focus on the billing and merchant solutions ecosystem, Hyderabad-based fintech firm Zaggle Prepaid Ocean Services Ltd has acquired a 51% controlling stake in local billing software company EffiaSoft Private Ltd, for a consideration exceeding ₹41 crore.
The acquisition, formalised after board approval, will see Zaggle purchase 45.33% from EffiaSoft’s existing shareholders and founders, Koushik Shee and Akula Krishna Rao, for ₹36.72 crore. An additional 5.67% is set to be acquired for ₹4.59 crore, with the final mode of acquisition (cash or share swap) still under deliberation.
The deal, which places EffiaSoft at an estimated enterprise valuation of ₹81 crore, represents a strategic consolidation for Zaggle as it aims to reinforce its suite of offerings in spend management and financial software services. Founded by BITS Pilani and Oxford alumni, EffiaSoft specializes in point-of-sale (POS) software and currently works with over 300 merchant partners.
EffiaSoft has been registering a steady revenue increase, with FY24 registering ₹19 crore and a remarkable ₹24.67 crore provisional turnover by mid-March FY25. The organization now has around 220 employees and is poised to reach a revenue of ₹27 crore this fiscal year-end.
Zaggle’s regulatory filing stated that the move would “accelerate product development, enhance operational efficiency, strengthen payment processing capabilities, increase merchant engagement, and drive digital transformation across the fintech landscape.”
This marks Zaggle’s second major announcement within two days. On Wednesday, the company confirmed it had concluded its acquisition of a 38.34% stake in Mobileware Technologies, a digital payments firm, for nearly ₹23 crore, a deal originally announced in September 2024.
These back-to-back investments come in the wake of Zaggle’s successful Qualified Institutional Placement (QIP) round in late 2024, where the company raised approximately ₹595 crore. Industry sources suggest that more such deals are in the pipeline as Zaggle positions itself as a full-stack fintech infrastructure player.
EffiaSoft’s product and engineering depth will be anticipated to complement Zaggle’s growing list of corporate spend management, prepaid cards, and digital payment offerings—advancing its long-term vision of being a one-stop fintech shop for Indian businesses.
About Zaggle:
Established in 2011, Zaggle is a SaaS-based spend management company that has grown to become a fintech disruptor with corporate gifting, rewards, and employee benefits platforms. It went public on the stock exchange in 2023.
About EffiaSoft:
EffiaSoft, with its headquarters in Hyderabad, is renowned for its proprietary POS software and electronic billing solutions, with a client base across retail, hospitality, and SME segments.
With India’s digital payments market poised to cross $10 trillion by 2026, this acquisition could prove to be a decisive step in Zaggle’s ambitions to dominate the next frontier of digital finance.
Also Read: Can AI Image Generators Threaten Graphic Design Jobs?
