India: Zaggle Prepaid Ocean Services Limited (“The Company”), a leading player in spend management with a differentiated value proposition and diversified user base has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The company operates in the business-to-business-to-customer segment and is amongst a small number of uniquely positioned players with a diversified offering of financial technology products and services. It has one of the largest number of issued prepaid cards in India in partnership with certain of its banking partners (12.7% of the country’s total prepaid transaction value as of March 31, 2022), a diversified portfolio of software as a service, including tax and payroll software, and a wide touchpoint reach.
The Company plans to raise funds through initial public offering of equity shares with face value of Rs. 1 each. The offer comprising of fresh issue aggregating up to Rs. 4,900 million (The “Fresh Issue”) and an offer for sale aggregating up to 10,526,316 equity shares by “Promoter Selling Shareholder” and “Investor Selling Shareholder” (The “Offer for Sale”).
The net proceed from fresh issue is proposed to be utilised towards the following objectives – (i) Expenditure towards Customer acquisition and retention estimated to be Rs. 3,000 million; (ii) Expenditure towards development of technology and products estimated to be Rs. 400 million; (iii) Repayment/ pre-payment of certain borrowings, in full or part, availed by the company estimated to be Rs. 180 million and (iv) the balance towards general corporate purposes
The offer for sale up to 10,526,316 equity shares comprises of up to 1,529,677 equity shares by Raj P Narayanam; up to 1,529,677 equity shares by Avinash Ramesh Godkhindi; (“Promoter Selling Shareholders”); up to 2,830,499 equity shares by VenturEast Proactive Fund LLC; up to 2,046,026 equity shares by GKFF Ventures; up to 538,557 equity shares by VenturEast SEDCO Proactive Fund LLC; up to 118,040 equity shares by Ventureast Trustee Company Private Limited (“Investor Selling Shareholder”); up to 1,765,540 equity shares by Zuzu Software Services Private Limited (“Corporate Selling Shareholder”); up to 91,800 equity shares by Koteswara Rao Meduri; and up to 76,500 equity shares by Malvika Poddar (“Individual Selling Shareholder”);
ICICI Securities Limited, Equirus Capital Private Limited, IIFL Securities Limited and JM Financial Limited are the Book Running Lead Managers to the Issue.
The Company may, in consultation with the BRLMs, consider a Pre-IPO placement for cash consideration aggregating up to ₹ 980 million (the “Pre-IPO placement”).
The equity shares of the company will be listed on the BSE and NSE.