Zaggle Prepaid Ocean Services IPO is live. Should you Invest?

In this article

IPO details
Issue details
Offer Breakup
IPO Strengths
Key Risks
Zaggle Prepaid Ocean Services Financials

📃About Zaggle Prepaid Ocean Services

Incorporated in 2011, Zaggle Prepaid Ocean Services Limited provides financial technology (fintech) products and services to manage corporate business expenses through automated and innovative workflows.

The company offers FinTech and SaaS products and services to corporations in banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and the automobile industry. The SaaS platform is designed for:

Business spend management (including expense management and vendor management).
Manage rewards and incentives for employees and channel partners.
Gift card management for merchants, which we refer to as a customer engagement management system (CEMS).

Zaggle’s Product Portfolio Includes:

Propel: a corporate SaaS platform for channel rewards and incentives, employee rewards and recognition
Save is a SaaS-based platform and a mobile application that offers expense management solutions for business spend management, facilitating digitized employee reimbursements and tax benefits.
CEMS is a customer engagement management system that enables merchants to comprehensively manage their customer experiences, including rewarding merchants through gift cards and loyalty benefits.
Zaggle Payroll Card is a prepaid payroll card that allows customers to pay contractors, consultants, seasonal and temporary employees, and unbanked wage workers as an alternative to direct deposits to bank accounts or cash payments.
Zoyer is an integrated data-driven, SaaS-based business spend management platform with embedded automated finance capabilities in core invoice-to-pay workflows.

Zaggle Prepaid Ocean Services’ clientele includes companies like TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP Sanjiv Goenka Group), Hiranandani Group, Cotiviti, Greenply Industries, and so on.

As of fiscal 2023, the company has over 250 employees, 7 offices across India, more than 1750 customers, and over 1.7 million end users.

💰Issue Details of Zaggle Prepaid Ocean Services

IPO open from 14^th Sep 2023 – 18^th Sep 2023
Face value: ₹1 per equity share
Price band: ₹156 to ₹154 per share
Market lot: 90 shares
Minimum Investment: ₹14,760
Listing on: BSE and NSE
Offer for sale: Approx ₹563.38 Cr (Fresh Issue: ₹392 Cr + OFS ₹171.38 Cr)
Registrar: Kfin Technologies Limited

🪙Total Issue Price

**Zaggle Prepaid Ocean Services** IPO Issue Price

🪚Offer Breakup

🔭IPO Object

The company intends to utilise the net proceeds from the issue towards the funding of the following objects:

Expenditure towards Customer acquisition and retention.
Expenditure towards the development of technology and products.
Repayment/ pre-payment of certain borrowings, in whole or part, availed by the company.
General corporate purposes.

⛓️IPO Strength

Some of the qualitative factors and strengths that form the basis for computing the Offer Price are:

Differentiated SaaS-based fintech platform, offering a combination of payment instruments, mobile applications and API integrations.
In-house developed technology and robust network effect.
Business model with diverse sources of revenue and low customer acquisition and retention costs.
Diversified customer relationships across sectors along with preferred banking and merchant partnerships.
Seasoned management team with deep domain expertise supported by a professional workforce.
Robust operating and financial metrics.

🧨IPO Risk

Laws and regulations governing their business and operations may continue to change and evolve, and introducing new rules and regulations applicable to their business may adversely affect their financial condition, results of operations and profitability.
They are dependent on third-party payment networks to operate their prepaid card business.
Program Fees generate a substantial portion of their revenue through their arrangements with their banking partners. The RBI regulates the businesses of their banking partners, and any change in the RBI’s policies, decisions and regulatory framework could adversely affect their business, cash flows, results of operations and financial condition.
Their recent revenue growth rates may be different from their future financial performance. They need more operating history at their current scale. Effective management of their growth could materially and adversely affect the success of their business and impact their margins.