Zaggle Raises 98 Crores over two tranches in pre-IPO round6 months ago Rituka M
Software-as-a-service (SaaS) fintech Zaggle Prepaid Ocean Services has raised a total of ₹98 crore ahead of its initial public offer (IPO). The fintech has undertaken a pre-IPO placement of 5,975,609 equity shares for Rs. 164 per equity share (including a share premium of Rs. 163 per equity share) aggregating to ₹98 crore across two tranches.
Founded in 2011, by Phani Raj, Zaggle has raised a total of ₹1.2 billion in funding over 3 rounds. It has also acquired two startups — Ckick&Pay and Pennyful.com — in 2017 and 2018 respectively.
In the first tranche, Zaggle raised Rs. 73 crores, 30 crores each from market investors Ashish Rameshchandra Kacholia and Bengal Finance and Investment for over 18.29 lakh shares each. Additionally, the remaining from investors Himanshi Kela, Absolute Returns Scheme, Vikasa India EIF I Fund – Incube Global Opportunities, and Acintyo Investment Fund PCC – Cell 1.
In the second tranche, Zaggle allotted 1,524,390 equity shares raising Rs. 25 crore allotted to Value Quest SCALE fund. ICICI Securities Limited, Equirus Capital Private Limited; IIFL Securities Limited, and JM Financial Limited are the book-running lead managers to the issue. Having filed their DRHP last year with SEBI for their proposed IPO; comprising of a fresh issue aggregating up to ₹490 crores and an offer for sale aggregating up to 10,526,316 equity shares by ‘promoter selling shareholder’ and ‘investor selling shareholder’.
The proceeds of the fresh issue will go towards expenditure on customer acquisition and retention. Additionally, it will also go towards the development of technology and products. Moreover, a portion of the proceeds will be utilized to repay certain borrowings and general corporate purposes.