Fintech Company Zaggle Prepaid Ocean Services files DRHP with SEBI for the proposed IPO; Key Details here

Zaggle Prepaid Ocean Services is into Technology Fintech and is looking raise funds through Fresh Issue and Offer for Sale

Zaggle Prepaid Ocean Services to raise Fresh Issue aggregating up to Rs. 392 crores and an Offer for Sale 10,449,816 Equity Shares through public issue IPO

Zaggle Prepaid Ocean Services IPO: Zaggle Prepaid Ocean Services Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 1 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 392 crores and an Offer for Sale up to 10,449,816 Equity Shares.. ICICI Securities, Equirus Capital, IIFL Securities, JM Financial have been appointed as lead merchant bankers for the proposed IPO. It has appointed KFin Technologies Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 392 Crs and offer-for-sale (OFS) of up to 10,449,816 equity shares by Raj P Narayanam, Avinash Ramesh Godkhindi, VenturEastProactive Fund LLC, GKFF Ventures, VenturEastSEDCO Proactive Fund LLC, Ventureast Trustee Company Private Limited (acting on behalf of Ventureast Proactive Fund), Zuzu Software Services Private Limited, Koteswara Rao Meduri who will offload up to 1,529,677 Equity Shares, up to 1,529,677 Equity Shares, up to 2,830,499 Equity Shares, up to 2,046,026 Equity Shares, up to 538,557 Equity Shares, up to 118,040 Equity Shares, up to 1,765,540 Equity Shares and up to 91,800 Equity Shares...

Objects of the issue:
1) Expenditure towards Customer acquisition and retention amounting to Rs. 300 crores., 2) Expenditure towards development of technology and products Rs. 40 crores, 3) Repayment/ pre-payment of certain borrowings, in full or part, availed by the company amounting to Rs. 17.08 crores.., and 4) General corporate purposes.

Promoters of Zaggle Prepaid Ocean Services are Raj P Narayanam and Avinash Ramesh Godkhindi and holds 57.91% stake in the company.

About Company:
Incorporated in 2011, Zaggle operate in the business-to-business-to-customer (B2B2C) segment where it interact and interface with Customers (i.e., businesses) and end Users (i.e., employees). Company is offering fintech products and services, having issued prepaid cards in India in partnership with certain banking partners, a diversified portfolio of SaaS, including tax and payroll software, and a wide touchpoint reach (Source: Frost & SullivanReport). It is also into spend management, with more than 50 million prepaid cards issued in partnership with banking partners and more than 2.27million users served, as of March 31, 2023.

About Industry:
India’s fintech ecosystem has grown rapidly and its market revenue is estimated to reach approximately ₹8,341.0 billion in Fiscal 2027 as a result of supporting government policieswhich have fostered a cashless society andrising investments. India hadthe highest fintech adoption rate of 87.0%in Fiscal 2023,compared to other countries. India has the fastest-growing digital payments industry in the world, with a five-fold increase in contactless payments from 2016 to 2021 and the number of businesses accepting contactless payments grewsix-fold from 2018 to 2021. In Fiscal 2022, UPI was expected to account for 86.0% of all consumer paymentsand digital payments from consumers to merchants were expected to reach 1,575.0%growthin Fiscal 2022. India’s digital payments industry is expected to grow at a CAGR of approximately 22.0% from 2023 to 2027. The overall market for spend management software and services (in-house and outsourced; including procurement management, expense management, and payroll management) was estimated to surpass₹200billion by Fiscal 2027, with the share of outsourced spend management estimated to bearound 60.0% during thatperiod (Source: Frost & Sullivan Report).

Source: SEBI, BSE, NSE, DRHP, Zaggle Prepaid Ocean Services, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.