Zaggle Prepaid receives green signal from SEBI to raise funds via IPO

5 Apr 2023 , 03:36 PM

B2B SaaS FinTech company Zaggle Prepaid Ocean Services Limited has received observation letter from SEBI to raise funds through initial public offer (IPO). 

The company had filed DRHP with SEBI in December 2022, to raise Rs 490 crore through fresh issue of equity share and an offer for sale of 10,526,316 equity shares by promoters and shareholders. 

In offer for sale, Raj P Narayanam will offload up to 1,529,677 Equity Shares, Avinash Ramesh Godkhindi will sell 1,529,677 Equity Shares. Other investors who are offloading their shares are VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, and Ventureast Trustee Company Pvt Ltd.

The company will use net proceeds from the fresh issue towards funding customer acquisition and retention, development of technology and products, repayment or prepayment of loans, and general corporate purposes.

The fintech startup, founded in 2011, saw the majority of its income coming from Program Fees, the Zaggle Propel platform revenue and Zaggle Save and other gift cards it offers. In total, these three verticals accounted for INR 354.63 Cr in FY22.

ICICI Securities, Equirus Capital, IIFL Capital Services and JM Financial are the book running lead managers of the IPO.