Zaggle Prepaid Ocean Services
Book Building issueMainboard₹563 Cr issue
-1.22%
Listing gain over issue price
Issue size
₹563 Cr
1 lot at cut-off
₹14,760
Lot size
90shares
Open
14 Sep 2023
Close
18 Sep 2023
Allotment
22 Sep 2023
Listing
22 Sep 2023
Listing performance
Issue price
₹164
Listed at
₹162
Listing-day close
₹158.35
Latest price
₹150.36
Close on 23 Oct 2026
Listing gain
-1.22%
Return since issue
-8.32%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 14 Sep 2023 – 18 Sep 2023
- Listing date
- 22 Sep 2023
- Face value
- ₹1 per share
- Issue price
- ₹164 per share
- Lot size
- 90 shares
- Issue type
- Book Building issue
- Total issue size
- ₹563 Cr
- Market cap at offer price
- ₹2,002 Cr
- Promoter holding
- 57.91% → 44.07% pre-issue → post-issue
- ISIN
- INE07K301024
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- 301, III Floor, CSR Estate, Plot No.8, Sector 1, HUDA Techno Enclave, Madhapur Main Road, Rangareddi, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,54,58,515 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 90 shares per lot, in multiples, at ₹164
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 90 | ₹14,760 |
| Retail (max) | 13 | 1,170 | ₹1,91,880 |
| S-HNI (min) | 14 | 1,260 | ₹2,06,640 |
| S-HNI (max) | 67 | 6,030 | ₹9,88,920 |
| B-HNI (min) | 68 | 6,120 | ₹10,03,680 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,54,58,515
Anchor portion
₹254 Cr
at ₹164 per share
Valuation and performance
Valuation at offer price
₹164 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.46 | — |
| P/E (×) | 66.67 | — |
| Market cap | — | ₹2,002 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 46.98%
- Debt / equity
- 2.48
- PAT margin
- 4.14%
- NAV per share
- ₹5.29
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Zaggle Prepaid Ocean Services
Incorporated in 2011 and incorporated as a public limited company in September 2022, Zaggle Prepaid Ocean Services Limited operates at the intersection of SaaS and fintech ecosystems. The company has issued over 50 million co-branded prepaid cards in partnership with banking partners (approximately 16.0% of India's total prepaid transaction volume as of March 31, 2023) and serves more than 2.27 million users across 2,411 corporate and SMB customers as of March 31, 2023. The company earns revenue through multiple streams: Program Fees from interchange fees on prepaid card transactions, SaaS subscription fees from its platform for business spend management, rewards and incentives management, and customer engagement management, and value-added services. The company was founded by promoters Raj P Narayanam and Avinash Ramesh Godkhindi.
Company Analysis
from RHPZaggle Prepaid Ocean Services Limited is a B2B-to-C fintech company offering prepaid cards in partnership with banking partners, SaaS-based spend management software, and financial technology solutions across India.
Incorporated in 2011 and incorporated as a public limited company in September 2022, Zaggle Prepaid Ocean Services Limited operates at the intersection of SaaS and fintech ecosystems. The company has issued over 50 million co-branded prepaid cards in partnership with banking partners (approximately 16.0% of India's total prepaid transaction volume as of March 31, 2023) and serves more than 2.27 million users across 2,411 corporate and SMB customers as of March 31, 2023. The company earns revenue through multiple streams: Program Fees from interchange fees on prepaid card transactions, SaaS subscription fees from its platform for business spend management, rewards and incentives management, and customer engagement management, and value-added services. The company was founded by promoters Raj P Narayanam and Avinash Ramesh Godkhindi.
Financial Technology (Fintech)Software as a Service (SaaS)Spend ManagementPrepaid Payment InstrumentsBusiness Process Management
Objects of the Issue
- Expenditure towards Customer acquisition and retention ₹3,000.00 million p.20
- Expenditure towards development of technology and products ₹400.00 million p.20
- Repayment/ pre-payment of certain borrowings, in full or part, availed by our Company ₹170.83 million p.20
- General corporate purposes p.20
- Expenditure towards Customer acquisition and retention ₹3,000.00 million p.49
- Expenditure towards development of technology and products ₹400.00 million p.49
- Repayment or pre-payment of certain borrowings, in full or part, availed by our Company ₹170.83 million p.49
- General corporate purposes p.49
- Expenditure towards Customer acquisition and retention ₹3,000.00 million p.106
- Expenditure towards development of technology and products ₹400.00 million p.107
- Repayment or prepayment of certain borrowings, in full or part, availed by our Company ₹170.83 million p.109
- General corporate purposes [●] p.110
- Expenditure towards Customer acquisition and retention p.166
- Expenditure towards development of technology and products p.166
- General corporate purposes ₹980 million (Pre-IPO Placement proceeds) p.315
- General corporate purposes ₹3,920 million (Fresh Issue portion) p.315
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹[●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹3,920 million
- Offer for Sale
- Up to 10,449,816 Equity Shares aggregating up to ₹[●] million
- Price Band
- [●] per Equity Share (Floor Price: ₹[●]; Cap Price: ₹[●])
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹1 per Equity Share
Business Model
The company operates a B2B-to-C subscription and transaction-based model. Revenue is generated from: (1) Program Fees (30.62% of FY2023 revenue) earned as a percentage of spending on prepaid cards issued through banking partners, including interchange fees from Payment Networks like Visa; (2) SaaS subscription fees from corporate and SMB customers for access to spend management, payroll, tax software and rewards platforms, charged on a per-user monthly basis; (3) Value-added services including finder's fees for loans disbursed through partner VAS providers; and (4) Propel platform revenue from issuing reward points to employees and channel partners. The company also incurs customer acquisition and retention costs including digital marketing, business promotion, and sales team expenses.
Business Segments
Revenue earned from partnerships with banking partners (IndusInd Bank Limited, Yes Bank Limited, NSDL Payments Bank Limited) through interchange fees on prepaid card transactions and spend-based fees from Payment Networks such as Visa. The company issues prepaid cards which constitute approximately 16.0% of India's total prepaid transaction volume as of March 31, 2023.
Software-as-a-service platform offerings for business spend management (including expense management and vendor management), rewards and incentives management for employees and channel partners, and customer engagement management system (CEMS). Services are provided to corporate customers and SMB customers with subscription fees charged on a per-user monthly basis with one-time setup fees.
Third-party services offered to the existing user base through the app/platform, including finder's fees for loans disbursed through VAS partners to users from corporate/SMB customers.
Prepaid cards for corporate spend management enabling employees to make purchases with controlled budgets
Reward points and loyalty programs for channel partners and customer acquisition
Issuance of prepaid cards in partnership with banking partners for corporate customers, employees, and users; includes Save and Propel cards for spend-based fee generation
Software-as-a-service platform for business spend management, vendor management, expense management, gift card management, rewards and incentives management; includes Zoyer platform
Commission revenue from merchants for driving footfall and spend; finder's fees for loans and other third-party services offered through the platform
Provides spend management, rewards, incentives, and employee benefits solutions to large enterprises
Provides scalable SaaS solutions to small and medium businesses through digital marketing and self-service onboarding
Revenue from acting as Program Manager and Business Correspondent to Partner Banks for Co-branded Prepaid Card Instruments, earning Interchange revenue from partner banks
Revenue from monetisation of Propel platform and sale of gift cards and vouchers; Group acts as principal and recognises revenue on completion of performance obligation on redemption of propel points
Fees income from various activities including user fees, platform fees, customization fees etc.; fee income is recognised when control in services have been transferred
Interchange fees earned on spend that employees and channel partners make on co-branded prepaid cards in partnership with banking partners at offline and online outlets, including inactivity fees and other income from banking partners
Revenue from monetisation of Propel points (reward points) issued to customers' employees and channel partners, recognized upon redemption of points against catalogues of gift cards and vouchers
Subscription-based fee income from corporate and SMB customers for usage of SaaS platforms including user fees, platform fees, customization fees and setup fees
SWOT Analysis
Strengths
- • Diversified fintech and SaaS offering with large prepaid card portfolio(p.20)
- • Seasoned management team with deep domain expertise(p.43)
- • Strong revenue growth trajectory(p.36)
- • Large user base with significant penetration(p.20)
- • Leading prepaid card issuer in India with significant market share(p.103)
- • Diversified revenue streams across fintech and SaaS platforms(p.103)
- • Large user base with significant platform reach(p.103)
- • Strong growth in customer base and user adoption(p.103)
- • Profitability and positive cash generation(p.115)
- • One of the largest issued prepaid card bases in India(p.151)
- • Diversified SaaS-fintech platform with low customer acquisition costs(p.152)
- • Strong revenue growth trajectory(p.156)
- • Multiple revenue streams(p.157)
- • High customer retention and low churn(p.158)
- • Experienced management team with deep domain expertise(p.158)
- • Significant market position in spend management(p.148)
- • B2B2C Fintech SaaS platform with diversified portfolio(p.208)
- • Strong revenue growth across segments(p.205)
- • Growing propel platform and gift card revenue(p.228)
Weaknesses
- • Negative cash flows and negative net worth in prior years(p.23)
- • High employee attrition rates(p.43)
- • Heavy dependence on top customers(p.37)
- • Dependence on key management personnel(p.43)
- • Limited operating history at current scale(p.36)
- • Outstanding litigation involving promoters and directors(p.23)
- • Negative operating cash flows and historical negative net worth(p.45)
- • High counterparty credit risk and rising trade receivables(p.45)
- • Substantial debt obligations with restrictive covenants(p.47)
- • Limited insurance coverage for operational risks(p.55)
- • Past compliance lapses and statutory payment delays(p.52)
- • Ongoing legal proceedings involving the company and its promoters(p.52)
- • Dependence on related party transactions and potential conflicts of interest(p.56)
- • Heavy reliance on few customers for revenue concentration(p.78)
- • Dependence on small number of major customers and banking partners(p.103)
- • Existing debt burden requiring repayment(p.109)
- • Concentration of promoter shareholding(p.92)
- • Declining EBITDA margin and profitability trends(p.115)
- • Declining gross margin(p.153)
- • Dependence on a small number of large customers(p.160)
- • Declining EBITDA margin(p.153)
- • Limited operating history at current scale(p.32)
- • Declining profitability despite revenue growth(p.153)
- • High debt burden relative to equity(p.235)
- • Negative retained earnings historically(p.226)
- • Significant contingent tax liability(p.230)
- • Large provision for expected credit losses on receivables(p.223)
- • High finance costs indicating leverage stress(p.228)
Opportunities
- • Rapidly growing Indian fintech and digital payments market(p.20)
- • Strong expansion of digital payments infrastructure(p.20)
- • Growing spend management software market(p.20)
- • Planned customer acquisition and technology investments(p.21)
- • International expansion into high-growth markets(p.44)
- • Increased customer acquisition and market penetration through Offer proceeds(p.50)
- • Technology and product development to enhance competitive position(p.49)
- • Growing corporate spend management and employee benefits market(p.79)
- • Expansion of Propel platform and gift card revenue streams(p.79)
- • Massive growth in India's digital payments market(p.104)
- • Significant untapped workforce and financial inclusion opportunity(p.103)
- • Strong growth in prepaid card transaction volumes(p.127)
- • Expansion of SMB and startup segments(p.107)
- • Growing spend management software market(p.143)
- • Expanding spend management market in India(p.152)
- • Growing digital payments adoption in India(p.156)
- • Large addressable market with workforce growth(p.159)
- • Prepaid card market expansion(p.159)
- • Cross-selling and upselling within customer base(p.159)
- • International expansion potential(p.160)
- • Expansion of SaaS and platform fee revenue(p.228)
- • Growing propel platform monetization(p.210)
- • Intangible asset development for future revenue(p.221)
Threats
- • Dependence on banking partner relationships and interchange fee arrangements(p.39)
- • Regulatory risk to interchange fees(p.39)
- • Intense competition in spend management and fintech sectors(p.43)
- • Risk of customer non-renewal and churn(p.38)
- • Counterparty credit risk from payment delays(p.23)
- • Regulatory and policy uncertainty in fintech and payments(p.23)
- • Intense competitive pressure in fintech and payment solutions market(p.44)
- • Regulatory changes to RBI policies on prepaid instruments and interchange fees(p.51)
- • Dependence on banking partner relationships and potential termination(p.34)
- • Cybersecurity breaches and data protection compliance failures(p.53)
- • Software defects and platform availability risks(p.54)
- • Macroeconomic headwinds and Indian economic volatility(p.61)
- • Rising inflation and increased operational costs(p.62)
- • Currency exchange rate fluctuations affecting foreign investors(p.64)
- • Seasonality in revenue affecting quarterly performance(p.51)
- • Intense competition in fintech and digital payments sector(p.132)
- • Regulatory changes and compliance requirements(p.140)
- • Cyclicality and volatility of prepaid card transactions(p.45)
- • Dependence on banking partner relationships and interchange fees(p.106)
- • Economic sensitivity and consumer spending patterns(p.105)
- • Highly competitive fintech and spend management industry(p.39)
- • Dependence on banking partner relationships(p.158)
- • Regulatory changes in digital payments and fintech(p.169)
- • Technology platform and security risks(p.49)
- • Competition from well-established players with greater resources(p.170)
- • Dependence on third-party service providers(p.166)
- • Concentration of revenue from few major customers(p.231)
- • Service tax regulatory risk(p.230)
- • Significant working capital requirements(p.205)
- • Regulatory dependency on banking partners(p.210)
- • Right-of-use asset growth indicating operating lease concentration(p.220)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Raj P Narayanam | Promoter / Promoter Selling Shareholder | 48.56% | — |
| Avinash Ramesh Godkhindi | Promoter / Promoter Selling Shareholder | 9.35% | — |
| Raj P Narayanam | Promoter/Executive Chairman | 48.56% | — |
| Avinash Ramesh Godkhindi | Promoter/Managing Director and Chief Executive Officer | 9.35% | — |
| Raj P Narayanam | Promoter | 48.56% | [●] |
| Avinash Ramesh Godkhindi | Promoter | 9.35% | [●] |
| Raj P Narayanam | Promoter/Executive Chairman | — | — |
| Avinash Ramesh Godkhindi | Promoter/Managing Director and Chief Executive Officer | — | — |
| Raj P Narayanam | Promoter | 51.94% | 51.71% |
| Avinash Ramesh Godkhindi | Promoter | 10.00% | 9.95% |
| Raj P Narayanam | Promoter/Promoter Selling Shareholder | — | — |
| Avinash Ramesh Godkhindi | Promoter/Promoter Selling Shareholder | — | — |
| VenturEast Proactive Fund LLC | Investor Selling Shareholder | — | — |
| GKFF Ventures | Investor Selling Shareholder | — | — |
| VenturEast SEDCO Proactive Fund LLC | Investor Selling Shareholder | — | — |
| Ventureast Trustee Company Private Limited | Investor Selling Shareholder | — | — |
| Zuzu Software Services Private Limited | Investor Selling Shareholder | — | — |
| Koteswara Rao Meduri | Investor Selling Shareholder | — | — |
| Raj P Narayanam | Promoter/Selling Shareholder | — | — |
| Avinash Ramesh Godkhindi | Promoter/Selling Shareholder | — | — |
| VenturEast Proactive Fund LLC | Investor Selling Shareholder | — | — |
| GKFF Ventures | Investor Selling Shareholder | — | — |
| VenturEast SEDCO Proactive Fund LLC | Investor Selling Shareholder | — | — |
| Ventureast Trustee Company Private Limited (acting on behalf of Ventureast Proactive Fund) | Investor Selling Shareholder | — | — |
| ZUZU SOFTWARE SERVICES PRIVATE LIMITED | Selling Shareholder | — | — |
| Koteswara Rao Meduri | Selling Shareholder | — | — |
Leadership
Raj P Narayanam · Executive Chairman / Promoter
Avinash Ramesh Godkhindi · Managing Director and Chief Executive Officer / Promoter
Venkata Aditya Kumar Grandhi · Chief Financial Officer
Hari Priya · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Zaggle Prepaid Ocean Services IPO FAQs
What is the lot size of Zaggle Prepaid Ocean Services IPO?
The minimum lot size of Zaggle Prepaid Ocean Services IPO is 90 shares. One lot costs ₹14,760 at the cut-off price.
When does Zaggle Prepaid Ocean Services IPO open and close?
Zaggle Prepaid Ocean Services IPO opened for subscription on 14 Sep 2023 and closed on 18 Sep 2023.
What is the listing date of Zaggle Prepaid Ocean Services IPO?
Zaggle Prepaid Ocean Services IPO listed on 22 Sep 2023.