Zaggle Looks to Raise Up to $250M Through IPO

Software as a service (SaaS) FinTech Zaggle has begun preparations to go public at some point in 2022, multiple sources with knowledge of the situation told Moneycontrol for a report Friday (Jan. 14).

Zaggle was founded by serial entrepreneur Raj N. Phani in 2011. The Mumbai-headquartered B2B company operates in digital payments, cashbacks and analytics and works with clients including Bayer, Tata Motors and HDFC Bank.

“Zaggle is looking to raise around $200 million to $250 million through an initial public offering as of now, though the final size hasn’t been frozen as these are early days. It is a profitable player with strengths in the expense management software space,” one of the sources told Moneycontrol.

Another source told Moneycontrol that Zaggle’s proposed initial public offering (IPO) will mostly include the issuance of primary shares and could lead to a partial exit of some of the company’s early-stage investors, including investment banks Kotak Mahindra Capital, IIFL Securities and ICICI Securities.

Zaggle plans to file a draft red herring prospectus with Sebi by March, according to a third source. The company recently appointed Vidyaniwas Khetawat as its chief financial officer and Raghav Hari Choudhary its vice president, investor and corporate development as part of an executive team shakeup. Former Citibank executive Avinash Godkhindi is the firm’s managing director and CEO.

Related: Zaggle Debuts Neobanking Service For SMBs

In May, Zaggle jumped into the neobanking space with a new initiative through ZikZuk that includes the Founders Card, the Business Finance Manager and the Multibank Account Aggregation, all aimed at helping small and medium-sized businesses (SMBs).

Zaggle will also work with traders and services businesses before expanding to other businesses like manufacturers. Geographically, Zaggle plans to begin conducting business in metros, then move onto other towns and cities Pan-India.

India’s economy, which is home for $793 billion in sales, which includes around 20 million mom-and-pop businesses, according to PYMNTS research. That accounts for roughly 88 percent of the country’s brick-and-mortar market. Those smaller businesses, called kiranas, have increasingly carried the weight for India’s economy.