Cashback and analytics company Zaggle Prepaid Ocean Services, which offers cashbacks to customers at restaurants, has acquired Bengaluru-based online cashback and coupons company Pennyful in a cash-and-stock deal. The deal size was undisclosed.
Pennyful, which competes with the likes of CashKaro, has been offering cashbacks to consumers at about 500 e-commerce sites, including Flipkart, Amazon India and Paytm, which will now be integrated with Zaggle’s 2,500 restaurant merchants.
The Pennyful team of 15 members will join the 115-team at Zaggle, especially to augment the latter’s digital marketing and product technology team, primarily for their consumer-focused business.
Zaggle is headquartered in Hyderabad with offices in Mumbai and Bengaluru. “The idea was to bring together capabilities across a broad range of areas and reach out to customers both offline and online,“ said Avinash Godkhindi, CEO of Zaggle. “Pennyful’s understanding of the consumer base and its online offerings brings value to the team.“
Godkhindi said the acquisition will also help Zaggle to expand into the US market through Pennyful’s US entity.
Pennyful was started in the US first by Ravitej Yadalam before he entered India with the product in 2011. “For several years, India has been our focus. With the acquisition, there will be a big focus on the US market,“ Yadalam said.
Pennyful has remained bootstrapped. “I am extremely pleased to announce that Zaggle is moving towards an omni-channel marketing platform post acquisition of Pennyful. Zaggle, over a period of five years, has built a huge repertoire of B2B clients. The focus is on the B2B2C market of 25+ million, and we want to create more and more value for this set of consumers,“ said Zaggle founder Phani N Raj.
Godkhindi said the merged entity will also launch new payment products by the next quarter.