IPO-bound B2B fintech solutions provider Zaggle has raised INR 98 Cr in two tranches as part of its pre-initial public offering (IPO) round. In the first tranche, Zaggle raised INR 73 Cr from a clutch of investors, including Vikasa India EIF I Fund and Acintyo Investment Fund PCC – Cell 1, Zaggle said. In the second tranche, the company allotted 15.24 Lakh equity shares amounting to INR 25 Cr to Value Quest SCALE Fund.

The pre-IPO round was undertaken pursuant to the approval of the board and shareholders in their meeting held on August 2023, respectively, the fintech startup said. Zaggle filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO last year. According to the DRHP, the IPO would comprise of a fresh issue of equity shares worth INR 490 Cr and an offer for sale component aggregating up to 1.05 Cr equity shares.

Founded in 2011, Zaggle is a spend management and corporate employee benefits platform. It helps businesses automate their accounts and issues prepaid cards, in partnership with banking partners, to reward their employees with incentives and gifts. Earlier this year, Zaggle raised INR 50 Cr in debt funding from alternative investment fund platform Vivriti Asset Management (VAM) to grow its products, such as the newly-launched accounts payable platform ‘Zoyer’. Zoyer is an integrated data driven, SaaS based business spend management platform.

Zaggle’s profit after tax jumped 2.2X to INR 41.92 Cr in the financial year 2021-22 from INR 19.33 Cr in FY21. Revenue from operations rose to INR 371.25 Cr from INR 239.97 Cr in FY21, while total revenue grew 1.5X to INR 371.66 Cr from INR 240.29 Cr in the previous fiscal year. After a lull in the IPO market in 2022 for tech startups, which continued in the first few months of 2023 as well, a reversal is expected in the second half.