Zaggle IPO: SaaS Fintech Startup Raises INR 253 Cr From Anchor Investors

IPO-bound B2B SaaS fintech startup Zaggle on Wednesday (September 13) said it has raised INR 253.52 Cr from 23 anchor investors at a price of INR 164 per share.

The startup, whose public issue will open on Thursday (September 14), allocated 1.54 Cr shares to anchor investors. 

“The board of directors of the company… have finalised allocation of 1,54,58,515 equity shares to anchor investors at anchor investor allocation price of INR 164 per equity share..,” said Zaggle. 

Out of the 1.5 Cr shares, 24.46% (or 37,80,630) were allocated to three domestic mutual funds, including Kotak Equity Opportunities Fund, Neuberger Berman Emerging Equity Fund and ICICI Prudential Technology Fund, via four schemes. 

Other prominent institutional investors that participated in the anchor round included LIC MF, IIFL, East Spring and international funds such as Morgan Stanley Asia (Singapore), Societe Generale, Goldman Sachs (Singapore). 

The anchor book process also saw participation from angel investors like Madhu Kela-led MK Ventures, Ashish Kacholia, among others.

Zaggle’s public listing comprises a fresh issue of shares worth INR 392 Cr and an offer for sale (OFS) element of 10.5 Mn shares. The shares of the startup will list on both NSE and BSE.

The public issue, the price band for which has been set at INR 156-INR 164, will close on September 18. 

At the upper end of the price band, Zaggle’s IPO issue size stands at INR 563.4 Cr.

Zaggle will deploy the net proceeds from the IPO to meet the expenses related to customer acquisition and retention, development of technology and products, repayment or prepayment of certain borrowings, and general corporate purposes.

Founded in 2011, Zaggle is a spend management and corporate employee benefits platform. It filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December last year.

As per its red herring prospectus (RHP), Zaggle reported a profit after tax (PAT) of INR 22.9 Cr in the financial year 2022-23 (FY23), down from INR 41.9 Cr in the previous fiscal. Operating revenue jumped to INR 553.5 Cr in FY23 from INR 371.2 Cr in the previous year. 

After the lull in new-age tech IPOs in 2022 amid macroeconomic headwinds and weak investor sentiment, a number of Indian startups have now resumed preparations to go public. The IPO of online travel aggregator Yatra is also set to open on Friday (September 15).