Hyderabad-based spend management solutions provider, Zaggle Prepaid Ocean Services Limited, has acquired a 26% stake in Mobileware Technologies for ?156 million ($1.87 million). Additionally, it has purchased a 12.34% stake from Mobileware’s promoters for ?72.5 million ($870,000), bringing its total shareholding in the company to 38.34% on a fully diluted basis.

Mobileware Technologies is a key player in India's digital payments sector, offering solutions to banks, financial services firms, and non-banking financial companies (NBFCs). Zaggle stated that this strategic investment would bolster its position in the spend management and SaaS FinTech space.

“The integration with Mobileware has already started to enhance Zaggle’s offerings, enabling embedded payment experiences for its clientele,” the company said in a statement.

Raj P. Narayanam, Founder & Executive Chairman of Zaggle, highlighted that the investment aligns with Zaggle’s vision of delivering seamless digital payment solutions.

“Mobileware’s proven expertise in building robust payment infrastructures, particularly in UPI and NPCI-certified solutions, complements our strategy of offering integrated financial services,” Narayanam added.

Zaggle reported a 29.6% increase in consolidated profit after tax, reaching ?197 million ($2.36 million) in Q3 FY24, up from ?152 million ($1.82 million) in the previous year. The company recently raised ?5.95 billion ($71 million) via a Qualified Institutional Placement (QIP), with plans to fund strategic acquisitions and drive revenue growth towards a $1 billion target.