B2B fintech startup Zaggle raises Rs 50 crore debt funding

Zaggle Prepaid Ocean Services Ltd, which runs a B2B fintech company Zaggle, has received Rs 50 crore in debt funding from a fixed-income Alternative Investment Fund (AIF) platform Vivriti Asset Management (VAM).

The company will use the money for working capital requirements and to grow its business.

Zaggle recently launched Zoyer, a business spend management and embedded finance platform that drives efficiencies, improves cash flow and maximizes financial performance. The company will use part of the debt funding to grow Zoyer.

The investment was made by purchasing debentures through the performing credit fund of VAM and it will be amortised over the following 40 months, with interest paid quarterly.

Zaggle applied for an IPO (Initial Public Offering) in December last year. It has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

Through IPO, Zaggle will offer new shares for sale worth Rs 490 crore. In addition to the public offering, there will be an offer for sale (OFS) for 10.5 million shares.

Zaggle claims to be a pioneer in spend management with a unique value proposition and a broad user base. The company was started in 2011. By providing a combined solution for spend management via prepaid cards and employee management (through SaaS), Zaggle has carved out a market niche in India.

Vivriti Asset Management connects institutional, private wealth, and offshore investors who want to create social & environmental effect together with a financial return to assist grassroots entrepreneurs and Small and Medium Enterprises (SMEs) in accessing the credit market via alternative investment funds.