Zaggle Prepaid Ocean Services to Raise INR 563 Crore in IPO to Fund Growth Initiatives

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Zaggle Prepaid Ocean Services Limited (“Zaggle”), a leading spend management platform in India, is set to open its initial public offering (IPO) on September 14, 2023. The company plans to raise INR 563 crore through the IPO, which will consist of a fresh issue of shares worth INR 392 crore and an offer-for-sale (OFS) of 10,449,816 equity shares by eight selling shareholders.

The selling shareholders include the company’s promoters, Raj P Narayanam and Avinash Ramesh Godkhindi, as well as venture capital firms VenturEast Proactive Fund LLC, GKFF Ventures, and VenturEast SEDCO Proactive Fund LLC.

The offer price for the IPO has not been finalized yet. However, if the offer price is set at INR 164 per share, the total issue size will be INR 563.38 crore. This is the same price at which the company undertook a pre-IPO placement in August 2023.

The proceeds from the IPO will be used by Zaggle to fund its growth initiatives, which include:

  • Customer acquisition and retention: Zaggle plans to use the proceeds to acquire new customers and retain existing customers. The company will also invest in marketing and sales initiatives to reach a wider audience.
  • Development of technology and products: Zaggle will use the proceeds to develop new technologies and products to improve its spend management platform. The company will also invest in research and development to stay ahead of the competition.
  • Repayment of debt: Zaggle will use a portion of the proceeds to repay its outstanding debt. This will improve the company’s financial health and free up resources for growth.

Zaggle is a well-established player in the spend management market, with over 5 crore prepaid cards issued in partnership with banking partners and over 0.23 crore users. The company’s platform helps businesses manage their employee expenses, travel and entertainment expenses, and other business expenses.

Zaggle’s network of corporate customers includes several industries such as banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automobile. The company has relationships with several corporate brands such as TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP – Sanjiv Goenka Group), Hiranandani group, Cotiviti, and Greenply.

The IPO will be managed by ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial. KFin Technologies will be the registrar.

The IPO is expected to be well-received by investors, given Zaggle’s strong track record and growth potential. The company is well-positioned to capitalize on the growing demand for spend management solutions in India.

In addition to the above, here are some other key highlights of the IPO:

  • The anchor book will be opened for a day on September 13, 2023.
  • The offer will close on September 18, 2023.
  • The minimum investment amount for retail investors is INR 10,000.
  • The company has a strong management team with a proven track record.
  • The company is backed by leading venture capital firms.

Overall, the Zaggle IPO is a good opportunity for investors to participate in the growth of a leading spend management platform in India.


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