Online digital payment startup from Hyderabad Zaggle has acquired Bangalore-Based online coupons firm Pennyful in a cash-and-stock deal. However, the financial details of the deal were undisclosed.
This acquisition will help Zaggle offer benefits to consumers and corporate employees, and develop technology products and solutions. Zaggle will also become an omnichannel online to offline (O2O) Commerce Company through the use of analytics and artificial intelligence.
About the Startups:
Zaggle is a Hyderabad-based startup and arm of Zaggle Prepaid Ocean Services. It was founded in 2011 by Phani N. Raj, a serial entrepreneur and seed investor. It is an award-winning digital payment, cashback and analytics startup. The startup helps corporate and individuals to enjoy gifts and experiences across multiple channels. Zaggle currently has 1000+ corporate clients, 1500+ merchant relationships, over 6 lakhs gift cards in the market, and over 2,50,000 downloads on the Zaggle App.
Zaggle is headquartered in Hyderabad and has the office in Mumbai and Bangalore.
Pennyful.com is a Bangalore-Based startup, founded in 2010 by Ravitej Yedalam. Pennyful is an online coupon and cash back shopping website which is dedicated to helping consumers save money by offering cash back incentives and more. Their flexible cash back payout options allow customers to redeem any amount of cash back.
Pennyful competes with Cashkaro and provides the coupon for top e-commerce websites which include Flipkart, Amazon India and Paytm. The startup claims to provide coupons for over 1,000 brands and has customers from more than 800 cities.
Speaking on the acquisition, Phani N Raj, Founder of Zaggle said: “Zaggle is a cashback, analytics and payment startup and all the three verticals of the company are growing and one of the reasons to acquire Pennyful was to truly become an omnichannel in the O2O space thus driving consumers to brands using the cashback and payments method.”
Post acquisition the 20-member team of Pennyful will join 115-team of Zaggle’s digital marketing, product and technology teams. The merged entity will also launch new payment products by the next quarter. Read more about Indian Startup Ecosystem.