The fixed-income Alternative Investment Fund (AIF) platform Vivriti Asset Management (VAM) announced that it had invested INR 500 million in Zaggle’s rated maiden debenture issuance. Zaggle is a market leader in spend management with a unique value proposition and a wide range of clientele (Source: Frost & Sullivan Report).
The investment’s revenues will be used to expand Zaggle’s products, including the recently introduced accounts payable platform “Zoyer,” the business stated in a statement.
An integrated data-driven SaaS platform for company expenditure management, Zoyer has automated financial capabilities built into its fundamental invoice-to-pay operations.
The revenues from the [debentures] will be utilized for operating capital and company expansion in addition to the new product development.
The investment was made by buying debentures through VAM’s performing credit fund, and it will amortize over the following 40 months, paying interest quarterly, the business stated in the statement.
VAM is a performing credit asset manager with a concentration on mid-sized operational firms with proven business models and running cash flows but limited access to traditional financing markets.
For end-users like capacity growth, asset purchase, product development, working capital, and debt refinancing, it offers customised finance in the region of INR 500-1000 million for a term of 2 to 5 years normally.
By March 2025, VAM hopes to reach INR 70,000 million in assets under management (AUM), having raised over INR 22,000 million in commitments across seven funds.
Mr. Mohamed Irfan, Fund Manager at VAM, said: “VAM values business profitability, strong management, cash generation ability, and sector tailwinds while investing – and Zaggle scores well on these. We are glad to partner in the firm’s growth through our investment in the company’s maiden, rated bond issuance”.
As of June 30, 2022, the firm served 1,896 clients and had 1,982,405 users on its platform, offering a wide range of SaaS-based financial solutions.
For the issue of co-branded prepaid cards, Zaggle has partnered with institutions like NSDL Payments Bank, Yes Bank, and IndusInd Bank.
Mr. Avinash Godkhindi, MD & CEO at Zaggle said, “We thank Vivriti Asset Management for believing in our vision and investing in our maiden rated bond issuance. Our Company has allotted 500 secured, unlisted, rated non-convertible debentures of the face value of INR1,000,000 each, aggregating to INR 500 million to Vivriti Asset Management on November 30, 2022, in accordance with terms specified under the private placement offer cum application letter”.
