Zaggle Prepaid Ocean Services Ltd, a prominent fintech player, has secured a funding of Rs 25 crore from the ValueQuest Scale Fund during its pre-initial public offering (IPO) phase. This came after the firm garnered Rs 73 crore from a group of investors. With this latest injection of funds, Zaggle’s total capital raised now stands at Rs 98 crore, split across two rounds of funding.
According to an official statement, Zaggle issued 15,24,390 equity shares to ValueQuest at a per-share price of Rs 164. The company had submitted its preliminary documents to the Securities and Exchange Board of India (SEBI) in December 2022 to initiate the process of raising funds through an IPO.
Based on the preliminary documentation, the upcoming IPO consists of a fresh issuance of equity shares valued at Rs 490 crore, alongside an offer for sale (OFS) component involving 1.05 crore shares that will be divested by promoters, investors, and other existing shareholders. The funds raised from the fresh issuance are intended to be allocated towards purposes such as customer acquisition and retention, technological and product development, debt repayment, and general corporate needs.
Earlier this year in March, Vivriti Asset Management had invested Rs 50 crore in Zaggle’s first debenture issue, which is to be amortised over the next 40 months. The interest payout will be quarterly, Vivriti had said. Zaggle said it will use the capital raised from Vivriti to grow its newly launched products.
Established in 2011, Zaggle specialises in the business-to-business-to-customer sector and has carved a distinctive niche in the Indian market by delivering an integrated solution for expenditure management using prepaid cards, along with employee management facilitated through Software as a Service (SaaS).
