Zaggle Prepaid Ocean Services IPO offering is for an aggregate issue size of Rs. 563.38 crores. Which includes a fresh issue of equity shares aggregating up to Rs. 392 crores and an offer for sale (OFS) of equity shares aggregating up to Rs. 171.38 crores.
The IPO opened for subscription on 14 September 2023. You can bid in the IPO till 18th September 2023.
Raj P Narayanam and Avinash Ramesh Godkhindi are the promoters of the company.
The article contains a detailed analysis of Zaggle Prepaid Ocean Services Limited’s IPO that will help you make informed investment decisions.
You can use net banking (ASBA) to invest in an IPO or invest through your Demat account to invest in an IPO.
Zaggle Prepaid Ocean Services Limited IPO Details
| Particulars | IPO Details |
| IPO Opening date | 14th September 2023 |
| IPO Closing date | 18th September 2023 |
| IPO Price | Rs. 156 to Rs. 164 per share |
| Lot size | 90 shares |
| Issue size | Rs. 563.38 Cr |
| No. of fresh shares | 23,902,439 shares aggregating to Rs. 392 crores |
| Offer for Sale | 10,449,816 shares aggregating to Rs. 171.38 cores |
| Listing on | BSE and NSE |
Find here other upcoming IPOs in 2023.
Zaggle Prepaid Ocean Services Limited IPO Timetable
| Particulars | IPO Details |
| IPO Opening date | 14th September 2023 |
| IPO Closing date | 18th September 2023 |
| Basis of Allotment date | 22nd September 2023 |
| Credit of Share | 26th September 2023 |
| Listing date | 27th September 2023 |
Zaggle Prepaid Ocean Services Limited IPO GMP
GMP data collected from various sources like reputed financial websites, news channels, stockbrokers and IPO blogs is under.
Remember – Grey Market Price (GMP) shows you an indicative price of Zaggle Prepaid Ocean Services Limited upon listing. You should take precautions because GMP is not an official price and only an indicative value.
| Date | GMP |
| 14th September 2023 | Rs. 32 |
| 13th September 2023 | Rs. 10 |
| 12th September 2023 | Rs. 10 |
| 11th September 2023 | Rs. NA |
Zaggle Prepaid Ocean Services Limited Overview
Incorporated in 2011, Zaggle Prepaid Ocean is a leading player in spend management, with more than 50 million prepaid cards issued in partnership with banking partners and more than 2.27 million users served as of March 31, 2023.
The company operates in a segment where it interacts and interfaces with Businesses (customers) and employees (who are end Users).
The primary customers provide access to their employees, channel partners and customers (together, the “Users”).
Through Zaggle’s arrangements with partner banks and fintechs, the customers are able to offer their employees, channel partners and consumers a suite of SaaS and fintech solutions.
The company’s omnichannel technology offering is depicted below
The company offers an integrated value proposition through its SaaS platform, providing a combination of payment instruments as well as an integrated mobile application that digitizes business and employee spending.
Zaggle is placed at the intersection of the SaaS and fintech ecosystems, and our SaaS platform is designed for
- Business spend management (including expense management and vendor management
- Rewards and incentives management for employees and channel partners
- Gift card management for merchants, which we refer to as a customer engagement management system
The network of Zaggle’s corporate customers covers the banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure and automobile industries.
The company’s existing customers include brands such as TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP – Sanjiv Goenka Group), Hiranandani group, Cotiviti and Greenply Industries.
As of March 31, 2023, we had issued 10.83 million active cards to 2,411 Customers across India. These Customers used Zaggle’s software to manage spending related to their employees, business, channel partners, and customers.
Breakdown of Zaggle’s Customer and User base is under
At present Zaggle works with lending and wealth management partners such as DBS Bank, Fibe (formerly, EarlySalary) and Tata Securities to offer their loan and wealth management products.
To further develop its fintech capabilities, Zaggle has partnered with Payment Networks such as Visa and other fintech such as Razorpay.
Industry Overview
As of March 2023, India had approximately 0.28 billion prepaid cards of approximately 1.62 billion prepaid payment instruments (smart cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, and paper vouchers).
The overall market for spend management software and services (in-house and outsourced; including procurement management, expense management, and payroll management) was estimated to be ₹82 billion in Fiscal 2022 and is expected to surpass ₹200 billion by Fiscal 2027
India has the fastest-growing digital payments industry in the world and India’s fintech ecosystem has grown rapidly and its market revenue is estimated to reach approximately Rs. 2406 billion in Fiscal 2027
India had the highest fintech adoption rate of 87.0% in Fiscal 2023, compared to other countries. India’s digital payments industry is expected to grow at a CAGR of 22.0% from 2023 to 2027, primarily attributable to digital currency and supporting technologies such as artificial intelligence and machine learning for convenience
Fintech players in India are increasingly focusing on the employee-oriented services market as this segment of customers is easy to acquire and retain at lower costs.
The demand for prepaid cards is primarily driven by corporates for gifting, reimbursements, and forex requirements for corporate travelers. Payroll cards being a safer alternative to cash payments are increasingly being adopted, as cards can be blocked and reissued if lost
Zaggle Prepaid Ocean Services Limited Issue Size
Total Issue Size of Zaggle Prepaid Ocean IPO is = Rs. 563.38 crores.
The IPO has 2 offerings, a “Fresh Issue” of equity shares aggregation up to Rs. 392 Crs and the “OFS portion” of the IPO aggregate amount of Rs. 171.38 Crs
You can bid on both. The IPO bidding process can be found here.
Zaggle Prepaid Ocean Services Limited Subscription Data
Below you can find the day-wise subscription data of the Zaggle Prepaid Ocean Services Limited IPO.
Subscription data shows the number of times the IPO is subscribed overall and also under each category.
| Date | QIB | NII | Retail | Total |
| Day – 1 14th September 2023 | 0.00 | 0.11 | 0.88 | 0.19 |
| Day – 2 15th September 2023 | 0.00 | 0.29 | 1.91 | 0.43 |
| Day – 3 18th September 2023 | 16.73 | 8.85 | 5.94 | 12.57 |
Zaggle Prepaid Ocean Services Limited Promoter Details
Raj P Narayanam and Avinash Ramesh Godkhindi are the promoters of the company.
The promoters collectively hold 56,865,000 equity shares, which constitute 57.91% of the issued, subscribed and paid-up equity share capital of the company.
As per the RHP, there is no promoter group of the company.
Zaggle Prepaid Ocean Services Limited Financials
Key financials of Zaggle Prepaid Ocean Services Limited Ltd. for the last 3 completed financial years FY23, FY22, and FY21 are under.
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 234.75 cr | Rs. 92.65 cr | Rs. 62.08 cr |
| Total Income | Rs. 554.57 cr | Rs. 371.66 cr | Rs. 240.29 cr |
| Profit/ Loss After Tax | Rs. 22.90 cr | Rs. 41.92 cr | Rs. 19.33 cr |
| Net Worth | Rs. 48.75 cr | Rs. -3.55 cr | Rs. -45.55 cr |
| Other Equity (including retained earnings) | Rs. 39.52 cr | Rs. -3.73 cr | Rs. -45.73 cr |
| Total Borrowing | Rs. 121.07 cr | Rs. 64.47 cr | Rs. 69.08 cr |
Net worth of Zaggle Prepaid Ocean Services Limited grew from negative Rs. – 45.55 cr in FY 2021 to positive Rs. 48.75 cr in 2023. In the past three years, Zaggle Prepaid Ocean Services Limited’s long-term borrowings also increased from Rs. 69.08 cr to Rs. 121.07 Cr.
The total income of Zaggle Prepaid Ocean Services Limited has grown approximately 3 times in the last three years from Rs. 62 cr to Rs. 234 cr. But the PAT fluctuated from Rs. 19 cr in FY 2021 to Rs. 41.92 cr in FY 2022, finally decreasing to Rs. 22.90 cr in FY 2023.
Note – The company had negative Net worth and Reserves and Surplus in the last two years.
Zaggle Prepaid Ocean Services Limited Peer Comparison
The Company is among a small number of uniquely positioned players with a diversified product offering and is placed at the intersection of the SaaS and fintech ecosystems.
Given the business model and its diversified product portfolio, there are no directly listed companies in India. Hence, there is no peer comparison possible.
Zaggle Prepaid Ocean Services Limited Objects of the Issue
Zaggle Prepaid Ocean Services Limited proposes to utilize the Net Proceeds from the Issue for
1. Expenditure towards Customer acquisition and retention
The company offers fintech products and services. Zaggle has one of the largest number of issued prepaid cards in India in partnership with certain banking partners.
They need to interact and interface with customers (i.e., businesses) and end Users (i.e., employees).
The company intends to utilize Rs. 300 cr to invest in business promotion to acquire new corporate and SMB Customers and offer incentives and cash back. This will help the company to continue to increase its User base and Program Fee income.
The IPO money for customer acquisition will be deployed phase-wise given under
- Rs. 120 cr in FY 2024
- Rs. 100 cr in FY 2025
- Rs. 80 cr in FY 2026
2. Expenditure towards development of technology and products
In order to grow, Zaggle Prepaid needs to invest in product development and technology and create new and differentiated products.
For this, the company plans on investing in technical teams with relevant skill sets to build, support, manage and enhance our existing products and also build new products which will allow us to address a wider spectrum of spends that businesses incur, invest in the required tools and platforms to improve our existing products and develop new products.
The IPO money for the development of products will be deployed phase-wise given under
- Rs. 12.50 cr in FY 2024
- Rs. 15 cr in FY 2025
- Rs. 12.50 cr in FY 2026
3. Repayment of borrowings availed the company
Zaggle Prepaid Ocean’s outstanding borrowings are Rs. 90.03 cr as of 31st March 2023.
Zaggle Prepaid Ocean Services Limited intends to utilize an estimated amount of Rs. 17.08 crores from the Net IPO Proceeds towards the repayment of its borrowings with ICICI Bank.
4. For General corporate purposes
The rest of the IPO amount will be spent on general corporate purposes subject to such utilization not exceeding 25% of the Net Proceeds, in compliance with the SEBI ICDR Regulations.
Should You Invest in Zaggle Prepaid Ocean Services Limited IPO?
Incorporated in 2011, Zaggle Prepaid Ocean is a leading player in spend management, with more than 50 million prepaid cards issued in partnership with banking partners and more than 2.27 million users served, as of March 31, 2023.
It has a differentiated SaaS-based fintech platform, offering a combination of payment instruments, mobile applications, and API integrations.
The company has grown from a negative net worth of Rs. – 45.55 cr in FY 2021 to a positive Rs. 48.75 cr in 2023. In the past three years, Zaggle Prepaid Ocean Services Limited’s long-term borrowings also increased from Rs. 69.08 cr to Rs. 121.07 Cr.
The total income of Zaggle Prepaid Ocean Services Limited has grown approximately 3 times in the last three years from Rs. 62 cr to Rs. 234 cr. But the PAT fluctuated from Rs. 19 cr in FY 2021 to Rs. 41.92 cr in FY 2022 and finally decreasing to Rs. 22.90 cr in FY 2023.
Key risks to check are –
- Operation in new Fintech space (industry)
- Negative Net Worth and Reserves and surplus in the last 2 years
- Risk of failure to maintain, our relationships with our banking partners
- Business is dependent on third-party Payment Networks
- Zaggles sites, networks, and systems may in the future, experience security incidents or breaches.
Here you can check the allotment status 3-4 days after the Zaggle Prepaid Ocean’s IPO is complete.
