Zaggle to Acquire 51% Stake in Effiasoft for INR 41.31 Crore The company will acquire a 45.33 per cent stake in Effiasoft from existing shareholders Koushik Shee and Akula Krishna Rao for a total consideration of INR 36.72 crore
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
In a strategic move to expand its fintech capabilities, Zaggle Prepaid Ocean Services Limited has announced the acquisition of a majority stake in Effiasoft Private Limited. According to a regulatory filing, the Board of Directors of Zaggle approved the acquisition during a meeting held in March 2025. The company will acquire a 45.33 per cent stake in Effiasoft from existing shareholders Koushik Shee and Akula Krishna Rao for a total consideration of INR 36.72 crore. Additionally, the Board has considered acquiring a further 5.67 per cent stake from the same shareholders for INR 4.59 crore, with the mode of acquisition—whether cash consideration or share swap—to be determined at a later stage.
Effiasoft, a technology-driven company specializing in product development, engineering, and software solutions, has made significant strides in the fintech and POS (point-of-sale) industry. With a robust network of over 300 merchant partners, its technology seamlessly integrates into merchant systems, enhancing operational efficiency and payment processing.
Financially, Effiasoft has demonstrated strong performance. For the financial year 2023-24, it reported a turnover of INR 18.94 crore. As of March 15, 2025, based on provisional unaudited financials, the company's turnover had surged to INR 24.67 crore for the ongoing fiscal year, indicating a steady growth trajectory.
Zaggle sees this acquisition as a key step in reinforcing its financial technology ecosystem. By leveraging Effiasoft's expertise, the company aims to accelerate product development, improve operational efficiency, and enhance merchant engagement. The acquisition is expected to boost Zaggle's payment processing capabilities and contribute to digital transformation in the fintech sector, allowing the company to deliver enhanced value to its customers.
The Board's decision aligns with Zaggle's broader strategy of strengthening its footprint in digital payments and business spend management solutions. With Effiasoft's established technological prowess and a growing customer base, this acquisition is likely to position Zaggle as a more formidable player in the rapidly evolving fintech landscape. The company has assured that further details regarding the transaction, including the final mode of acquisition, will be communicated in accordance with regulatory requirements.
