Highlights
Overview of Zaggle Prepaid Ocean Services’ Recent Capital Raise
Enterprise fintech firm Zaggle Prepaid Ocean Services has successfully raised Rs 595 crore through a qualified institutional placement (QIP). The state-owned Bank of India has emerged as the largest purchaser in this transaction.
Details of the Placement
The Mumbai-listed company offered 11.37 million shares at a price of Rs 523.20 each, reflecting a 5% discount on the floor price. The placement attracted substantial interest from institutional investors, highlighted by the following key participants:
- Bank of India’s ELSS Tax Saver Fund: Acquired 16.8% of the total offering.
- Societe Generale: Acquired a 9.2% stake via its Offshore Derivative Instruments (ODI) route.
- ICICI Prudential Technology Fund: Purchased 6.7% of the issued shares.
- Nuvama Enhanced Dynamic Growth Equity Fund: Also secured 6.7% of the shares.
Recent Investments
Recently, Zaggle invested approximately Rs 48 crore to acquire stakes in two enterprises, aiming to enhance its service portfolio. The specifics of these investments include:
- Span Across IT Solutions (TaxSpanner): Infused Rs 32.07 crore to obtain a 98.32% controlling stake, making it a subsidiary.
- Mobileware Technologies: Invested Rs 15.60 crore for a 26% stake in this digital payment infrastructure provider.
Financial Performance
Zaggle reported its most impressive quarterly results during Q2 of FY25, highlighting significant growth in both revenue and net profit:
- Revenue from Operations: Grew to Rs 302.55 crore, marking a 64.21% increase from Rs 184.24 crore in Q2 of FY24.
- Total Expenses: Increased to Rs 280.5 crore, up 60.3% compared to Rs 174.98 crore from the previous year.
- Net Profit After Tax: Reached Rs 20.29 crore, a remarkable rise of 167.67% from Rs 7.58 crore in the same quarter last year.
Future Expansion Plans
Zaggle is keen on strategic growth avenues, planning to explore mergers and acquisitions (M&A) within the SaaS fintech sector, with a focus on segments like Non-Banking Financial Companies (NBFCs) and payment services. The company has received board approval for a potential fundraising round of up to Rs 950 crore to support these expansion efforts.