Mumbai-listed fintech enterprise Zaggle Prepaid Ocean Services has successfully raised Rs 595 crore through a Qualified Institutional Placement (QIP). The fundraising effort witnessed robust participation from prominent institutional investors, with the state-owned Bank of India emerging as the largest buyer. The company sold 11.37 million shares at Rs 523.20 each, reflecting a 5% discount on the floor price.
Bank of India’s ELSS Tax Saver Fund acquired 16.8% of the offering, marking the institution as the largest participant in the QIP. French banking giant Societe Generale secured a 9.2% stake through its Offshore Derivative Instruments (ODI) route. Meanwhile, domestic investors ICICI Prudential Technology Fund and Nuvama Enhanced Dynamic Growth Equity Fund each picked up 6.7% of the issued shares.
The QIP proceeds are expected to bolster Zaggle’s strategic growth initiatives. Recently, the company invested Rs 48 crore to acquire stakes in two companies, expanding its service portfolio. It infused Rs 32.07 crore to secure a 98.32% controlling stake in Span Across IT Solutions (TaxSpanner), turning it into a subsidiary. Additionally, Rs 15.60 crore was allocated for a 26% stake in Mobileware Technologies, a digital payment infrastructure provider.
Record-Breaking Quarterly Performance
Zaggle reported its best-ever quarterly performance in Q2 FY25, showcasing significant year-over-year growth in both revenue and net profit. The company’s revenue from operations surged by 64.21% to Rs 302.55 crore, compared to Rs 184.24 crore in Q2 FY24. Total expenses rose by 60.3% to Rs 280.5 crore, up from Rs 174.98 crore in the same period last year. Despite the increased costs, Zaggle’s net profit after tax soared by 167.67%, reaching Rs 20.29 crore, a significant jump from Rs 7.58 crore in the previous year.
Strategic Expansion Plans
Looking ahead, Zaggle aims to capitalize on its strong financial performance by pursuing strategic expansions, including mergers and acquisitions (M&A) within the SaaS fintech space. The company is targeting segments such as Non-Banking Financial Companies (NBFCs) and Payments to further diversify and enhance its offerings. To support these initiatives, Zaggle has secured board approval for an additional fundraise of up to Rs 950 crore.
The QIP and recent acquisitions underscore Zaggle’s commitment to scaling its operations and strengthening its market position. As the fintech sector continues to evolve, the company’s strategic investments and growth trajectory position it as a formidable player in the industry.
