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Zaggle, a software-as-a-service business that filed preliminary documents for an initial public offering late last year, has received Rs50 crore in debt from Vivriti Asset Management.
Zaggle, which provides tools to help businesses manage their business expenses, intends to utilise the funds to expand its products, including its recently released accounts payable platform ‘Zoyer,’ as well as its working capital and business growth.
According to the firm, Vivriti purchased 500 secured, unlisted, rated non-convertible debentures with a face value of Rs10 lakh each through its performing credit fund. Zaggle will pay interest quarterly over the next 40 months to amortise the investment.
According to reports, the capital increase comes approximately two months after Zaggle filed its draught red herring prospectus with the market regulator for a Rs750 crore public offering, with partial exits from VenturEast and GKFF Ventures.
Vivriti provides financing finance to mid-sized operating enterprises with proven business concepts and running cash flows but no access to conventional debt markets.
In fiscal year 22, Zaggle reported operational revenue of Rs 371.3 crore, increasing 55 per cent from the previous year. Its earnings for the fiscal year more than doubled to Rs 41.9 crore. It competes with Divvy, Brex, Pleo, Ramp, Coupa, Expensify, Fleetcor, Edenred, Wex, and Happay, among others, and serves the banking and finance, healthcare, and manufacturing industries.