Enterprise fintech player strengthens position with successful fundraise, attracting major institutional investors while shares surge 4% following the announcement
In a significant move that underscores the growing institutional interest in India’s fintech sector, Zaggle Prepaid Ocean Services has successfully raised ₹595 crore through a qualified institutional placement (QIP). The Mumbai-listed enterprise fintech company saw its shares climb 4% to ₹551.5 on the BSE following the announcement, reflecting strong market confidence in its growth trajectory.
The company completed the placement by allotting 11.37 million shares at ₹523.20 each, representing a 5% discount to the floor price of ₹550.73. The successful fundraise has increased Zaggle’s paid-up equity share capital from ₹12.28 crore to ₹13.42 crore, marking a significant expansion in its capital base.
Bank of India emerged as the largest investor in the placement, with its ELSS Tax Saver Fund acquiring 1.91 million shares, representing 16.71% of the total issue. French banking giant Societe Generale secured a substantial position through its ODI route, picking up 9.2% of the offering, while domestic institutional investors ICICI Prudential Technology Fund and Nuvama Enhanced Dynamic Growth Equity Fund each secured 6.7% stakes.
Raj N, CEO of Zaggle, commented on the successful placement, stating, “This fundraise represents a strong vote of confidence from institutional investors in our growth strategy and execution capabilities. The capital will enable us to accelerate our expansion plans and strengthen our position in the enterprise fintech space.”
The fundraising comes on the heels of Zaggle’s impressive Q2 FY25 performance, where the company reported its highest year-over-year growth in both revenue and profitability. Revenue from operations surged 64.21% to ₹302.55 crore, while net profit showed remarkable growth of 167.67% to reach ₹20.29 crore compared to the same quarter last year.
The company has recently demonstrated its strategic growth ambitions through key acquisitions, investing ₹32.07 crore for a 98.32% stake in TaxSpanner and ₹15.60 crore for a 26% stake in Mobileware Technologies. These investments align with Zaggle’s vision to expand its service portfolio and strengthen its position in the digital payments infrastructure space.
“The successful QIP not only provides us with growth capital but also validates our business model and expansion strategy,” noted a senior company executive. “We’re particularly excited about the diverse mix of institutional investors, which includes both domestic and international players.”
For India’s fintech ecosystem, Zaggle’s successful fundraise signals continued institutional interest in enterprise-focused financial technology solutions. The company’s ability to attract major institutional investors, especially in the current market environment, demonstrates the growing maturity and appeal of India’s enterprise fintech sector.
Looking ahead, Zaggle has outlined plans to utilize the funds for strategic expansions, including potential M&A opportunities within the SaaS fintech space. With board approval for raising up to ₹950 crore, the company is well-positioned to pursue its growth initiatives in the NBFCs and Payments segments.
