Vivriti Asset Management Provides INR 50 Cr Debt Funding to Zaggle Ahead of IPO
- ByStartupStory | March 11, 2023
Zaggle, a B2B fintech startup preparing for an initial public offering, has secured INR 50 crore in debt funding from Vivriti Asset Management (VAM), an alternative investment fund platform. The newly raised funds will fuel Zaggle’s product expansion, particularly its recently launched accounts payable platform called ‘Zoyer.’ Zoyer is a SaaS-based business spend management platform with integrated data-driven and automated finance capabilities in the core invoice-to-payment workflow.
Zaggle will utilize the newly raised capital for working capital needs and further business expansion. Vivriti Asset Management (VAM) invested in Zaggle by purchasing debentures through its performing credit fund. The investment will be spread out over the next 40 months and will pay interest quarterly, as stated in a press release.
Zaggle, established in 2011, operates as a corporate employee benefits and spend management platform. The fintech company assists businesses in streamlining their accounts and collaborates with banking partners to distribute prepaid cards that enable corporations to award their staff with rewards and gifts. Zaggle filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December to pursue an initial public offering (IPO).
Zaggle is planning to offer fresh equity of INR 490 crore and an offer for sale (OFS) of 10.5 million shares as per its draft documents. The company’s profit after tax (PAT) surged by 2.2 times to INR 41.92 crore in FY22, compared to INR 19.33 crore in the previous fiscal year. Furthermore, the revenue from operations increased to INR 371.25 crore in FY22 from INR 239.97 crore in FY21. The total revenue of the company also grew by 1.5 times to INR 371.66 crore in FY22 from INR 240.29 crore in the previous year.
The debt funding acquired by Zaggle arrives during a prolonged funding downturn in the Indian startup ecosystem. Consequently, startups are encountering difficulties securing fresh capital. According to data from Inc42, Indian startups received a meager $693.47 million in funding during February, marking an 81% year-on-year drop and a 28.53% month-on-month decline.
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