B2B fintech firm Zaggle, which plans to go public, has secured INR 50 Cr from Vivriti Asset Management, a platform for alternative investment funds (VAM).
The newly released accounts payment platform "Zoyer" is one of the items that Zaggle plans to expand with the additional funding. An integrated data-driven SaaS platform for business spend management, Zoyer has automated financial capabilities built into its fundamental invoice-to-pay workflows.
Also, the additional money will be used for working capital needs and company expansion.
According to a statement, the investment was made through the acquisition of debentures through VAM's performance credit fund. It will be amortized over the following 40 months, paying interest quarterly.
Zaggle is a platform for corporate employee benefits and spending management that was founded in 2011. In collaboration with banking partners, the fintech firm helps businesses automate their accounts and issues prepaid cards so that businesses may give incentives and gifts to their staff.
Zaggle submitted its draught red herring prospectus (DRHP) for its first public offering to the Securities and Exchange Board of India (SEBI) in December (IPO).
The business is selling new equity for INR 490 Cr, according to the draught paperwork. In addition to the public offering, there will be an OFS for 10.5 million shares.
In the fiscal year 2021–2022 (FY22), Zaggle's profit after tax (PAT) increased 2.2X to INR 41.92 Cr from INR 19.33 Cr in FY21.
In FY21, operating revenue increased to INR 371.25 Cr from INR 239.97 Cr, while total revenue increased by 1.5X to INR 371.66 Cr from INR 240.29 Cr.
At a time when the Indian startup ecosystem is experiencing a protracted fundraising winter, loan capital is provided. As a result, companies are having trouble obtaining new funding. According to Inc42 data, Indian businesses only raised $693.47 Million in funding in February, a fall of 28.53% from January to February and 81% from year to year.