Fintech Startup Zaggle Raises Rs 595 Cr At 5% Discount

Enterprise fintech company Zaggle Prepaid Ocean Services has raised ₹595 crore through a qualified institutional placement, with Bank of India becoming the largest buyer. The company sold 11.37 million shares at ₹523.20 each, a 5% discount on the floor price.

The offering attracted significant interest from institutions. Bank of India's ELSS Tax Saver Fund bought 16.8% of the shares, while French banking giant Societe Generale acquired a 9.2% stake through its ODI (Offshore Derivative Instruments) route. Domestic investors ICICI Prudential Technology Fund and Nuvama Enhanced Dynamic Growth Equity Fund each picked up 6.7% of the shares.

Zaggle is planning strategic growth through mergers and acquisitions in the SaaS fintech space, focusing on NBFCs and Payments. The company has board approval to raise up to ₹950 crore to support these initiatives.

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The company recently invested ₹48 crore to expand its services. It spent ₹32.07 crore to acquire a 98.32% controlling stake in Span Across IT Solutions (TaxSpanner), making it a subsidiary, and ₹15.60 crore for a 26% stake in Mobileware Technologies, a digital payment infrastructure provider.

In Q2 FY25, Zaggle delivered its best-ever quarterly results, achieving record year-over-year growth in revenue and profit. Revenue from operations jumped 64.21% to ₹302.55 crore, compared to ₹184.24 crore in Q2 FY24. Total expenses also rose 60.3% to ₹280.5 crore, up from ₹174.98 crore last year. Despite higher costs, net profit after tax surged 167.67% to ₹20.29 crore, compared to ₹7.58 crore in the same period the previous year.

About Zaggle

Founded in 2011 by Raj Narayanam, Mumbai-listed Zaggle focuses on spend management solutions and corporate employee benefits platforms. The company reported issuing 50 million prepaid cards and serving over 3 million users.

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