Zaggle to raise Rs 490 crore via fresh issue for business expansion

·        Zaggle recently raised Rs. 98 crore in the Pre-IPO placement

·         Bengal Finance & Investment, Value Quest SCALE Fund and Ashish Rameshchandra Kacholia and others participated in the Pre-IPO fund raise

Zaggle Prepaid Ocean Services Limited (Zaggle), a leading B2B SaaS FinTech providing spend automation solutions and corporate cards player, announced plans to raise Rs. 490 crore for business expansion and strategic growth.

Zaggle intends to deploy Rs. 300 crore for expenditure towards Customer acquisition and retention; Rs. 40 crore for expenditure towards development of technology and products; Rs. 18 crore for repayment/ pre-payment of certain borrowings, in full or part, availed by the Company; and the rest for general corporate purposes.

The company recently raised Rs. 98 crore in their pre-IPO Placement issuing 5,975,609 equity shares at a price of Rs. 164 per equity share. Mr. Ashish Rameshchandra Kacholia, Bengal Finance & Investment Pvt. Ltd, Value Quest SCALE Fund, Ms. Himanshi Kela, Absolute Returns Scheme, Vikasa India EIF I Fund – Incube Global Opportunities and Acintyo Investment Fund PCC – Cell 1 participated in the fundraise.

For the company’s business model and its diversified product portfolio, there are no direct listed companies in India or internationally whose business portfolio is comparable with that of Zaggle. Over the last decade Zaggle has displayed strong fiscal discipline and is one of the few fintech companies in India that has been profitable for the last three years.

Zaggle offers a differentiated value proposition and diversified user base. The company works with customers across industries and provides offerings to customers and users that include employees, channel partners and customers, while collaborating with merchants, banks and NBFCs, providing a strong value proposition to each stakeholder. As of June 30, 2022, the company had 1,436 corporate accounts and 460 SMB accounts.