Zaggle Prepaid Ocean Services raises Rs 25 cr from ValueQuest, ahead of IPO
Zaggle Prepaid Ocean Services, a fintech company specializing in Software-as-a-Service (SaaS) solutions, has secured a significant investment of Rs 25 crore from ValueQuest Scale Fund through a private placement.
This additional capital infusion from the fund, managed by ValueQuest Investment Advisors, follows closely on the heels of the company’s successful pre-IPO placement which raised Rs 73 crore last week. This combined investment brings the total raised by Zaggle to Rs 98 crore.
The company’s approach involves a strategic move to enhance its financial standing and prepare for its upcoming Initial Public Offering (IPO). In collaboration with its merchant bankers, Zaggle executed a pre-IPO placement transaction involving the issuance of 15,24,390 equity shares at a unit price of Rs 164. This private placement resulted in the accumulation of Rs 25 crore, as detailed in a notice released to investors on August 22.
The funding received from ValueQuest Scale Fund and the previous pre-IPO placement is poised to strengthen Zaggle’s financial position as it gears up for its IPO. The company’s innovative SaaS solutions in the fintech domain have gained attention, and this infusion of capital underscores investor confidence in the company’s potential for growth and value creation.
As Zaggle continues to expand its presence and offerings within the fintech sector, the recent investments provide crucial resources that can be directed towards product development, technological enhancements, market expansion, and furthering the company’s strategic objectives. The successful fundraising efforts signal the company’s readiness to embark on its IPO journey and make its mark in the public markets.
Zaggle Prepaid Ocean Services, a provider of financial technology products and services, recently allocated 44.51 lakh equity shares at the same price through a private placement. The recipients of these shares include Ashish Rameshchandra Kacholia, Bengal Finance and Investment, Himanshi Kela, Absolute Returns Scheme, Vikasa India EIF I Fund – Incube Global Opportunities, and Acintyo Investment Fund PCC – Cell 1. These allocations further strengthen Zaggle’s financial position and investor base.
With regulatory approval secured for the launch of its Initial Public Offering (IPO), Zaggle, a prominent player in the field of spend management with a unique value proposition and a diverse user base, is gearing up for a significant capital raise. The company aims to generate approximately Rs 663 crore through its IPO. This calculation is based on the current issue price of Rs 164 per share, which serves as the foundational value for determining the total issue size.
This IPO marks an important milestone in Zaggle’s journey, enabling it to access additional resources that can be allocated toward strategic growth initiatives, technological advancements, product innovation, market expansion, and the enhancement of its service offerings.
The success of the private placement and the forthcoming IPO underlines the confidence investors have in Zaggle’s business model and its potential for further growth and value creation in the competitive fintech landscape.
The forthcoming Initial Public Offering (IPO) by Zaggle Prepaid Ocean Services comprises two components: a fresh issuance of shares amounting to Rs 490 crore, and an offer-for-sale (OFS) of 1,05,26,316 equity shares by promoters and investors. However, when taking into account the pre-IPO placement, the fresh issue size might potentially be reduced from the initial Rs 490 crore.
As outlined in the company’s prospectus, the reduction in the fresh issue size will align with the size of the pre-IPO placement. If this reduction in the fresh issue size is indeed implemented as per the company’s plan, it would lead to a revised fresh issue size of Rs 392 crore.
Considering this potential reduction and the combined figures from the OFS and the fresh issue, the expected total offer size for the Zaggle IPO could be estimated at around Rs 565 crore. This adjusted estimation reflects the strategic steps the company is taking to optimize its IPO structure based on the funds raised through the pre-IPO placement.
This IPO is anticipated to provide Zaggle with a significant capital infusion, enabling the company to execute its growth plans, expand its market presence, enhance its technology, and further its innovative financial technology offerings. As the company navigates the process of going public, the IPO’s final figures will be unveiled closer to the launch date, providing investors with a clear view of the investment opportunity.
In the upcoming IPO of Zaggle Prepaid Ocean Services, several stakeholders will participate in the offer-for-sale (OFS) component, including:
– Promoters Raj P Narayanam and Avinash Ramesh Godkhindi
– Zuzu Software Services, the largest public shareholder with an 18.95 percent stake
– VenturEast Proactive Fund LLC
– GKFF Ventures
– VenturEast SEDCO Proactive Fund LLC
– Ventureast Trustee Company
– Koteswara Rao Meduri
– Malvika Poddar
The fresh issuance of shares is planned to raise capital for the company’s growth and strategic initiatives. Excluding offer expenses, the proceeds from the fresh issue will be allocated as follows:
– Expenditure amounting to Rs 300 crore for customer acquisition and retention
– Development of technology and products, with a budget of Rs 40 crore
– Repayment of debts totaling Rs 18 crore
– The remaining amount will be used for general corporate purposes
Zaggle Prepaid Ocean Services has demonstrated profitability for the past three financial years, underlining its sound financial standing and the effectiveness of its business model.
The IPO is being managed by notable merchant bankers including ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial. This consortium of financial advisors will play a crucial role in facilitating the IPO process and ensuring its successful execution.
As Zaggle approaches its IPO launch, the participation of various stakeholders and the allocation of funds toward growth-oriented strategies demonstrate the company’s commitment to utilizing the capital raise to its fullest potential, further enhancing its position in the fintech sector and driving its continued success.
