Zaggle Card IPO opened for subscription from September 14, 2023 to September 18, 2023. Zaggle Prepaid Ocean Services Limited filed Red Herring Prospectus (DRHP) with market regulator SEBI on December 19, 2022, for an Initial public offering (IPO). Zaggle Limited is coming up with an Offer for Sale (OFS) of 10,449,816 shares with face value of ₹1 per Equity Shares and a fresh issue of ₹392 Crore.
The face value of each equity share is INR 1. The promoter Raj P Narayanam, Avinash Ramesh Godkhindi, Koteswara Rao Meduri, and Malvika Poddar are selling a part of their stake in the company through OFS. Investors such as VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, Ventureast Trustee Company Private Limited (acting on behalf of Ventureast Proactive Fund), and Zuzu Software Services Private Limited are selling some part of their stake in the company.
Zaggle Company Reviews
Founded on June 2, 2011, in Hyderabad, Zaggle is a leading player in spend management. The company offers a combined solution for spend management through prepaid cards and employee management (through SaaS).
The company is the largest provider of issued prepaid cards in India in partnership with some banks. Around 12.7% of the country’s total prepaid transaction value is handled by the company by March 31, 2022. Zaggle operates in the business-to-business-to-customer (“B2B2C”) segment.
- The products or services can be categorized under three such
- Zaggle Zoyer – business spend management (including expense management)
- Zaggle Save – rewards and incentives management for employees and channel partners
- Zaggle Propel – customer engagement management system
- The company is focusing on Startups, SMEs, and Corporate.
- Zaggle established strong relations with its clients such as TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, and Wockhardt.
- Serves across Industries such as banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure and automobile industries, etc.
- 7 offices across India with over 1.7 million users and more than 1750 clients.
- Over 45 million prepaid cards distributed by the company since its inception.
- Zaggle was awarded Best Software Product – Enterprise Solutions – at the 27th annual HYSEA Innovation Summit.
Zaggle Company Reviews – Founders and Leadership team
- The company is founded by Mr. Raj P Narayanam and Mr. Avinash Ramesh Godkhindi.
- Mr. Raj P Narayanam is the Executive Chairman of the company. He holds a post-graduate diploma in business management with a specialization in finance from the FORE School of Management.
- Mr. Avinash Ramesh Godkhindi is the Managing Director and Chief Executive Officer of the company. He holds a bachelor’s degree in engineering from Bangalore University, Bengaluru. He also holds a master’s degree in business administration from the University of Chicago, Chicago.
Zaggle Company Reviews – Revenue and profits
Zaggle reported strong revenue despite the economic contraction caused by Covid 19. The company operating revenue has increased from ₹683.33 million in FY 2020 to ₹3,712.55 million in FY2022. Profit after tax of the company has increased from ₹37.19 million in FY 2020 to ₹419.21 million in FY2022. Net cash flows from operating activities have gone up from negative ₹(204.12) million from FY2020 to ₹200.81 million FY2022.
Zaggle card IPO – Financial Details
| All amounts in INR Million (Year ended March 31) | 2020 | 2021 | 2022 |
| Revenue Operation | 683.33 | 2,399.66 | 3,712.55 |
| Total Income | 683.63 | 2,402.93 | 3,716.64 |
| EBITDA | 111.04 | 276.27 | 598.54 |
| EBITDA Margin (%) | 16.25 | 11.51 | 16.12 |
| Profit After Tax | 37.19 | 193.30 | 419.21 |
| Earnings Per equity Share-Diluted | 0.41 | 2.11 | 4.57 |
| Net Cash from Operating Activities | (204.12) | 34.14 | 200.81 |
| Debt/Equity Ratio (%) | (1.02) | (1.52) | (18.12) |
| Debt Service Coverage Ratio | 1.53 | 4.63 | 5.17 |
| Net Capital Turnover Ratio (%) | (3.45) | (8.00) | 19.05 |
| NAV per Equity Share (₹) | (7.04) | (4.94) | (0.39) |
Zaggle IPO Details
| Zaggle IPO Details | Zaggle IPO Details Price Band, Date and other details |
| Zaggle Card IPO Date | September 14, 2023 to September 18, 2023 |
| Zaggle Card IPO Price band | ₹156 to ₹164 per share |
| Zaggle Card IPO Allotment date | Friday, September 22, 2023 |
| Refunds Initiation date | Monday, September 25, 2023 |
| Credit of Shares to Demat Account | Tuesday, September 26, 2023 |
| Listing Date | Wednesday, September 27, 2023 |
| Fresh Issue | INR 392 Crore |
| Offer for Sale | 10,449,816 shares of ₹1 (aggregating up to ₹171.38 Cr) |
| Equity Shares outstanding prior to the Offer | 92,218,710 Equity Shares |
| Maximum bid (lot size) For retail investor | 13 lots (1170 shares) total investment of ₹191,880 |
| Minimum bid (lot size) For retail investor | 1 lot (90 shares) total investment of ₹14,760 |
| Face Value | INR 1 per share |
| Listing on | BSE & NSE |
Zaggle Card IPO Review: Do you invest?
- Zaggle Limited is one of the leading companies in spend management through prepaid cards and employee management through SaaS.
- The profit after tax of Zaggle doubled from INR19.33 Cr in FY21 to INR42 Crore in FY22.
- The fintech’s total revenue for FY22 rose 1.5X to INR 371.66 Cr from INR 240.29 Cr in FY21.
- Zaggle to collaborate with NPCI for contactless credit cards on RuPay. Along with partner banks, the company would use this platform to launch multiple credit cards for SMEs, Corporate, and consumers
- Good customer feedback – the product is innovative. The website has several options to redeem the card.
- This is a new-age company and has been in profit for the last three fiscal years.
- I would invest in Zaggle IPO as a long-term investor.
Zaggle card IPO review – Lead Managers and Contacts
| Contact Details | Lead Managers |
| Unit no. 602 and 603 6th Floor, Hyde Park Opposite Ansa Industrial Estate, Saki Vihar Road, Andheri East, Mumbai – 400 072 Maharashtra, India E-mail: haripriya.singh@zaggle.in Telephone: +91 40 2311 9049 www.zaggle.in | 1. ICICI Securities Limited 2. Equirus Capital Private Limited 3. IIFL Securities Limited 4. JM Financial Limited |
Zaggle IPO Details – Allotment Status
Zaggle card IPO allotment status will be available on KFin Technologies website website. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to Telephone: +91 40 6716 2222, E-mail: zaggle.ipo@kfintech.com
Zaggle IPO GMP
| Date | Zaggle IPO GMP | Zaggle Card IPO Price |
| 15-09-2023 | Rs 20 | Rs 164 |
| 14-09-2023 | Rs 20 | Rs 164 |
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