Zaggle Raises INR 595 Cr Via QIP, Shares Up 4% Intraday 

Fintech SaaS company Zaggle raised INR 594.84 Cr via qualified institutional placement (QIP), issuing 1.13 Cr equity shares to eligible qualified institutional buyers. 

The shares were issued at INR 523.20 per share, reflecting a 5% on the floor price of INR 550.73 per share. 

In an exchange filing, Zaggle said, “…the special purpose committee of the board of directors of the company (“committee”) has, at its meeting held today, i.e., December 23, 2024, approved the allotment of 1,13,69,282 equity shares of face value INR 1/- each to eligible qualified institutional buyers at the issue price of INR 523.20/- per equity share (including a premium of INR 522.20/- per equity share)”.

Bank of India ELSS Tax Saver emerged as the largest buyer, snapping up 16.81% of the offering. It was followed by Societe Generale – ODI and ICICI Prudential Technology Fund, which secured 9.25% and 6.72% of the offering, respectively. 

Nivama Enhanced Dynamic Growth Equity also secured 6.7% in the offering. 

After this allotment, the paid-up equity of Zaggle will increase to 13.42 Cr from 12.28 Cr. 

This comes after the company on December 18 began its QIP offering at a floor price of INR 550.73 per equity share. However, the company then outlined that it had received the regulatory nod to raise as much as INR 950 Cr from the offering. 

As per its offer document, Zaggle then planned to use INR 500 Cr from the QIP proceeds for investments and acquisitions. While INR 59.1 Cr would be utilised for prepayment or repayment of outstanding borrowings availed by the company, the remaining amount will be used for general corporate purposes.

It is pertinent to note that SaaS fintech startup Zaggle which made its public listing in September last year has witnessed a significant upswing in stock price since listing. To be precise, this upswing is an increase of 223.29% since listing and 150.09% on a YTD basis. 

The company also seems to be on an acquisition shopping,  wrapping up two back-to-back acquisitions of Span Across IT Solutions and Mobileware Technologies in September. 

While it acquired a 98.32% stake in Span Across for INR 32.07 Cr, it bought a 26% stake in Mobileware for INR 15.6 Cr. 

Sources told Inc42 that, the company is also eyeing another acquisition to ramp up its merchant financial service play.

Founded in 2011 by Raj Narayanam, Zaggle provides a spend management and corporate employee benefits platform. It helps businesses automate their accounts and issue prepaid cards, in partnership with banking partners, to reward their employees.

Zaggle provides a range of SaaS products, such as Zaggle Save for managing expenses and rewards, Zaggle EMS for expense management, and Zaggle Propel for employee rewards and incentives. It also offers Zaggle Zoyer, a platform for managing business spending. 

On the financial front, it posted a 167.67% jump in its consolidated profit after tax (PAT) to INR 20.29 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) from INR 7.58 Cr in the year-ago period, primarily due to a change in product mix. 

Its revenue from operations zoomed 64.21% to INR 302.55 Cr in Q2 FY25 from INR 184.24 Cr in the corresponding quarter last year. 

Even today, its shares surged as much as 4.02% intraday at INR 551.55 on BSE. Although it shed some gains to trade 2.76% higher at 544.85 at 2:45 PM.