Zaggle Prepaid Ocean Services – IPO Alert

 

 

The Indian prepaid card market for transaction value has recently boomed and is predicted to grow at a CAGR of approximately 35.8% from 2022 to 2027 as the commercial sector rapidly adapts to the usage of prepaid cards. The penetration and growth of debit and credit cards, also known as plastic money, is growing rapidly in India. Card-based payments registered a CAGR of approximately 10% in terms of volume and approximately 18% in terms of value between FY18 to FY23. Moreover, the total number of credit card subscribers grew from approximately 63 million in FY21 to approximately 85 million in FY23 owing to increasing demand for cashless and convenient transactions, mostly by millennial customers. To meet expanding customer demand, the number of businesses accepting contactless payments has also increased six-fold in the past three years. The sectors driving the growth are quick-service restaurants, pharmacies, food and grocery. The RBI-DPI Index continues to show a considerable increase in digital payment usage and penetration across India.

Incorporated in 2011, Zaggle Prepaid Ocean Services operates in a segment where it interacts and interfaces with its Customers (i.e., businesses) and end Users (i.e., employees) and is among a small number of uniquely positioned players with a diversified offering of fintech products and services, having one of the largest number of issued prepaid cards in India in partnership with certain of its banking partners which constituted approximately 16% of India’s total prepaid transaction volume in FY23, a diversified portfolio of SaaS, including tax and payroll software, and a wide touchpoint reach. It 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 offers a differentiated value proposition and diversified user base. The company is sector-agnostic, and its network of corporate customers covers the banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure and automobile industries, among others, where it has relationships with brands such as TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL, Hiranandani group, Cotiviti and Greenply Industries.

The company’s revenue from operations increased by 49.08% to INR 5,534.60 million in FY23 from INR 3,712.55 million in FY22. The company’s restated profit for the year decreased to INR 229.01 million in FY23 from a net profit of INR 419.21 million in FY22.

Objects of the issue:

1. Expenditure for customer acquisition
2. Expenditure for development of technology and products
3. Repayment of borrowings
4. General Corporate purposes