Mumbai, March 09, 2023: Vivriti Asset Management (“VAM”), a fixed-income Alternative Investment Fund (AIF) platform, invested ₹ 500 million in the rated maiden debenture issuance by Zaggle – a leading player in spend management, with a differentiated value proposition and diversified user base (Source: Frost & Sullivan Report).
The investment made through purchase of debentures via VAM’s performing credit fund, will amortise over the next 40 months, paying interest quarterly.
VAM is a sector-agnostic performing credit focussed asset manager that provides debt capital to mid-sized operating companies with proven business models and operating cashflows but lacks access to mainstream debt markets. It provides tailored debt in the range of ₹500-1000 million for a period of 2 to 5 years typically, for end-uses across capacity expansion, asset acquisition, product development, working capital, and refinancing debt. VAM has raised commitments of over INR 22,000 million across seven funds and aims to hit INR 70,000 million of assets under management (AUM) by March 2025.
The proceeds from the investment will be utilised in growing Zaggle’s products such as the newly launched accounts payable platform by Zaggle: “Zoyer”. Zoyer is an integrated data driven, SaaS based business spend management platform with embedded automated finance capabilities in core invoice to pay workflows. Along with utilisation towards the new products, the proceeds of the [debentures] shall also be used for working capital and business growth.
Mr. Mohamed Irfan, Fund Manager at VAM, said: “In successful tech companies, there is usually a small window between product development and its J-curve scale up where debt usually provides a good risk/reward opportunity. VAM values business profitability, strong management, cash generation ability and sector tailwinds while investing – and Zaggle scores well on these. We are glad to partner in the firm’s growth through our investment in the company’s maiden, rated bond issuance.”
With a diversified product portfolio of SaaS based fintech products, the company catered to 1,896 customers with 1,982,405 users on its platform, as of June 30, 2022. Zaggle has tied up with banks such as NSDL Payments Bank, Yes Bank, and IndusInd Bank for issuance of co-branded prepaid cards.
Mr. Avinash Godkhindi, MD & CEO at Zaggle said, “Over the last decade, Zaggle has emerged as a leading player in spend management, with a differentiated value proposition and diversified user base according to the Frost & Sullivan Report, operating in the business-to-business-to-customer segment (B2B2C) with corporate customers across industries such as BFSI, technology, healthcare, manufacturing, FMCG, infrastructure and automobile. Zaggle has been working towards digitizing business spends and enhancing organisation’s efficiency as a whole. We thank Vivriti Asset Management in believing in our vision and investing in our maiden rated bond issuance. Our Company has allotted 500 secured, unlisted, rated non-convertible debentures of face value of ₹1,000,000 each, aggregating to ₹500 million to Vivriti Asset Management on November 30, 2022, in accordance with terms specified under the private placement offer cum application letter.”
Zaggle Prepaid Ocean Services Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares and has filed a draft red herring prospectus (“DRHP)” with the Securities and Exchange Board of India (“SEBI”). The DRHP is available on the website of the SEBI at www.sebi.gov.in, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com and the respective websites of the Book Running Lead Managers at www.icicisecurities.com, www.equirus.com, www.iiflsecurities.com and www.jmfl.com.
Investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the RHP which may be filed with the Registrar of Companies in future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP filed with the SEBI in making any investment decision.