Initial public offering (IPO)-bound Zaggle Prepaid Ocean Services Ltd has attracted a Rs 50 crore investment from Vivriti Asset Management (VAM). “The proceeds from the investment will be utilised in growing Zaggle’s products such as the newly launched accounts payable platform by Zaggle: Zoyer,” the company stated. Zoyer is a data-driven, SaaS-based business management platform with automated finance capabilities.
The investment, Zaggle said, was done through the purchase of debentures via VAM’s performing credit fund and would amortise over the next 40 months, paying interest quarterly.
Avinash Godkhindi, MD & CEO at Zaggle said, “We thank Vivriti Asset Management for believing in our vision and investing in our maiden rated bond issuance. Our company has allotted 500 secured, unlisted, rated non-convertible debentures of face value of Rs 10 lakh, each, aggregating to Rs 50 crore to VAM on November 30, 2022, in accordance with terms specified under the private placement offer cum application letter.”
With a diversified product portfolio of SaaS-based fintech products, the company said it has catered to 1,896 customers with 1,982,405 users on its platform, as of June 30, 2022.
Mohamed Irfan, Fund Manager at VAM, said: “In successful tech companies, there is usually a small window between product development and its J-curve scale-up where debt usually provides a good risk/reward opportunity. VAM values business profitability, strong management, cash generation ability and sector tailwinds while investing – and Zaggle scores well on these. We are glad to partner in the firm’s growth through our investment in the company’s maiden, rated bond issuance.”
VAM is a sector-agnostic performing credit focussed asset manager that provides debt capital to mid-sized operating companies with proven business models and operating cashflows but lacks access to mainstream debt markets. It has raised commitments of over Rs 2,200 crore across seven funds and aims to hit Rs 7,000 crore of assets under management (AUM) by March 2025.
Prior to this, the fintech player (Zaggle) had filed preliminary papers with capital markets regulator SEBI in December last year to raise funds through an IPO. The IPO comprises a fresh issue of equity shares worth Rs 490 crore and an offer for sale (OFS) component of 1.05 crore stocks by promoters, investors and other shareholders, according to the draft red herring prospectus (DRHP).
Those offering shares in the OFS include promoters — Raj P Narayanam and Avinash Ramesh Godkhindi and investors — VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, and Ventureast Trustee Company.
ICICI Securities, Equirus Capital, IIFL Securities and JM Financial have been appointed as merchant bankers to manage the IPO. The equity shares of the company will be listed on the BSE and NSE.
(With inputs from PTI)
Also read: HFCL shares climb 4% today after collaborating with Microsoft for 5G solutions
Also read: SBI shares at Rs 750? Here are key triggers for potential upside post Rs 3,717-cr bond issue