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SaaS fintech firm Zaggle kickstarts preparation to raise around $200-$250 million via IPO

With a vision to become a ‘global digital bank’, Zaggle was established in 2011 by NYU Stern School of Business alumnus Raj N who is a serial entrepreneur and an active angel investor.

January 14, 2022 / 07:49 PM IST
Representative image

Representative image

SaaS (software as a service) fintech firm Zaggle which is founded by serial entrepreneur Raj N, who had also set up eYantra which pioneered corporate gifting and brand merchandising in India, has initiated the process for a public market debut in 2022, multiple sources in the know told Moneycontrol.

“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,” said one of the persons cited above.

Broadly, the Mumbai-headquartered B2B company operates in three key verticals – digital payments, cashbacks and analytics and works with clients like Bayer, Tata Motors and HDFC Bank according to its website. It made a foray into neo banking for the SME segment last year.

A second person said the proposed IPO will largely consist of primary issuance of shares and may also facilitate a partial exit for some early-stage investors. This person added that investment banks Kotak Mahindra Capital, IIFL Securities, and ICICI Securities have been taken on board as advisors for the listing.

A third person confirmed the IPO plans and appointment of advisors and added that the firm planned to file a draft red herring prospectus with Sebi by March.


All the three individuals above spoke to Moneycontrol on the condition of anonymity.

Moneycontrol is awaiting the response to an email query sent to Zaggle, Kotak Mahindra Capital and IIFL Securities and has sent reminders. This article will be updated when we hear from the firms. ICICI Securities declined to comment.

Zaggle recently rejigged its senior management team and appointed Vidyaniwas Khetawat as its Chief Financial Officer and Raghav Hari Choudhary its Vice President, Investor, and Corporate Development. Former Citibank executive Avinash Godkhindi is the MD and CEO.

Explaining the new hires, Raj N had said, “As a company, we have a lot in store for 2022. Finance is a key pillar for any business and more so for a SaaS FinTech like Zaggle. I am confident the expertise that Vidyaniwas Khetawat and Raghav Choudhary bring to the table will immensely benefit Zaggle in raising capital and executing our M&A plans.”


With a vision to become a ‘global digital bank’, Zaggle was established in 2011 by NYU Stern School of Business alumnus Raj N, an ex PwC consultant who is also an active angel investor. Reports indicate that the company, which serves startups, SME’s and corporates, has been funded by venture capital firms VenturEast and Argonaut Ventures.

Zaggle offers financial solutions and helps companies and retailers with gifts and experiences across multiple channels - employee rewards and recognition, employee benefits, channel partner incentives, online shopping cashback, and restaurant cashback.

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According to the firm’s website, it has more than 4,500 clients, 4.5 lac users, and 12,500 merchant relationships with 250 plus employees across 9 offices. It says Zaggle acquired multiple companies in the cashback, tech, and payments space, including Hyderabad-based mobile payment solutions platform Click & Pay.

According to a Hindu report dated April 20, 2021, Zaggle’s GTV (gross turnover value) grew 4.5 times in FY 21 over the previous year to Rs 14,500 crores on the back of accelerated adoption of digital payments during Covid-19.


On July 14, Moneycontrol was the first to report that Visa and Lightbox-backed PayMate, a B2B digital payment solutions player for the enterprise and SME segments, was evaluating a listing.

Later in the year, the fintech segment received a jolt when heavyweight Paytm made a dismal debut on the bourses on November 18. Gurugram based Mobikwik then decided to defer its listing plans.

In September 2021, Freshworks became India’s first SaaS company to be listed on the Nasdaq. Peers MapmyIndia and RateGain Travel Technologies made their debuts on the domestic bourses in December.

India SaaS companies raised $4.5 billion in 2021, as against $1.7 billion in 2020, according to Bain & Co report released in December. According to Bain, India houses about 9,000 SaaS companies, of which 1,300 have raised funds from venture capital firms.
Ashwin Mohan
first published: Jan 14, 2022 07:47 pm

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