BackSaaS fintech Zaggle to raise ₹750 cr in IPO
Software-as-a-service (SaaS) fintech firm Zaggle is looking to raise ₹750 crore through an initial public offering (IPO)
PremiumSoftware-as-a-service (SaaS) fintech firm Zaggle is looking to raise ₹750 crore through an initial public offering (IPO).
The Mumbai-based company’s issue will comprise a fresh issue of ₹490 crore and an offer for sale of up to 10.53 million shares by shareholders, according to the draft prospectus filed by Zaggle with Securities and Exchange Board of India (Sebi) on Tuesday.
VenturEast and GKFF Ventures are looking at a partial exit through the IPO, which will also see promoters Raj N. and Avinash Godkhindi trimming their stakes.
The company plans to utilize the proceeds of the fresh issue to acquire and retain customers ( ₹300 crore), developing technology and products ( ₹40 crore), for repayment and early payment of certain borrowings ( about ₹18 crore) and the rest for other corporate purposes. The proceeds of the OFS will go to the selling shareholders.
Currently, Raj holds over a 51% stake in the company and will sell about 3.2% of his holding. Godkhindi, who has about 9.95% stake, will dilute 16.67% of his holdings in Zaggle.
Zuzu Software Services, which has about 18.95% stake, will sell up to 1.77 million shares, or 10%, of its stake. Other shareholders including Koteswara Rao Meduri and Malvika Poddar will also participate in the share sale. ICICI Securities, Equirus Capital, IIFL Securities and JM Financial will be the book running lead managers to the issue.
Zaggle may consider a pre-IPO placement aggregating up to ₹98 crore, in which case, the amount to be raised from fresh issue will be deducted.
Founded in 2011, it offers employee rewards and recognition, channel partner incentives, employee benefits, online shopping as well as cash-backs at restaurants.
It posted operating revenue of ₹371.3 crore in FY22, up 55% from a year ago. Its profit for the year doubled to ₹41.9 crore. It competes with Divvy, Brex, Pleo, Ramp, Coupa, Expensify, Fleetcor, Edenred, Wex, and Happay and caters to banking and finance, healthcare and manufacturing, among others.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
