Bengaluru: Software-as-a-Service (SaaS) fintech company Zaggle is looking for a raise €750 crore through an initial public offering (IPO).
The Mumbai-based company’s edition includes a new edition of €490 crore and an offer to sell up to 10.53 million shares by shareholders, according to the draft prospectus filed by Zaggle with the Securities and Exchange Board of India (Sebi) on Tuesday.
VenturEast and GKFF Ventures are considering a partial exit through the IPO, in which promoters Raj N. and Avinash Godkhindi will also cut their stakes.
The company plans to use the proceeds of the issue to acquire and retain customers ( €300 crore), development of technology and products ( €40 crore), for the repayment and early payment of certain loans (approx €18 crore) and the rest for other corporate purposes. The proceeds of the OFS go to the selling shareholders.
Raj currently holds over a 51% stake in the company and will sell approximately 3.2% of his stake. Godkhindi, which owns approximately 9.95%, will dilute 16.67% of its stake in Zaggle.
Zuzu Software Services, which holds an approximately 18.95% stake, will sell up to 1.77 million shares, or 10% of its stake. Other shareholders including Koteswara Rao Meduri and Malvika Poddar will also participate in the share sale. ICICI Securities, Equirus Capital, IIFL Securities and JM Financial will be the lead bookers on the offering.
Zaggle can aggregate a pre-IPO placement of up to €98 crore, in which case the amount to be collected will be deducted from the reissue.
Founded in 2011, the company offers employee rewards and recognition, distributor incentives, employee benefits, online shopping and restaurant cash backs.
It achieved an operating income of €371.3 crore in FY22, up 55% from a year ago. Its net income doubled €41.9 million. It competes with Divvy, Brex, Pleo, Ramp, Coupa, Expensify, Fleetcor, Edenred, Wex, and Happay, and targets banking and finance, healthcare, and manufacturing, among others.
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