Vivriti Asset Management (VAM), a fixed-income Alternative Investment Fund (AIF) platform, invested Rs 500 million in the rated maiden debenture issuance by Zaggle, a player in spend management, with a differentiated value proposition and diversified user base, as per a Frost & Sullivan report.
The investment made through purchase of debentures via VAM’s performing credit fund, will amortise over the next 40 months, paying interest quarterly.
VAM is a sector-agnostic performing credit focussed asset manager that provides debt capital to mid-sized operating companies with proven business models and operating cashflows but lacks access to mainstream debt markets. It provides tailored debt in the range of Rs 500 to Rs 1000 million for a period of two to five years typically, for end-uses across capacity expansion, asset acquisition, product development, working capital, and refinancing debt.
VAM has raised commitments of over Rs 22,000 million across seven funds and aims to hit Rs 70,000 million of assets under management (AUM) by March 2025.
The proceeds from the investment will be utilised in growing Zaggle’s products such as the newly launched accounts payable platform by Zaggle, Zoyer. This is an integrated data driven, SaaS based business spend management platform with embedded automated finance capabilities in core invoice to pay workflows.
Along with utilisation towards the new products, the proceeds of the [debentures] shall also be used for working capital and business growth.
Mohamed Irfan, Fund Manager at VAM, said, "In successful tech companies, there is usually a small window between product development and its J-curve scale up where debt usually provides a good risk/reward opportunity. VAM values business profitability, strong management, cash generation ability and sector tailwinds while investing - and Zaggle scores well on these.”
With a diversified product portfolio of SaaS based fintech products, the company catered to 1,896 customers with 1,982,405 users on its platform, as of June 30, 2022. Zaggle has tied up with banks such as NSDL Payments Bank, Yes Bank, and IndusInd Bank for issuance of co-branded prepaid cards.
Avinash Godkhindi, MD and CEO at Zaggle said, “Our company has allotted 500 secured, unlisted, rated non-convertible debentures of face value of Rs 1,000,000 each, aggregating to Rs 500 million to Vivriti Asset Management on November 30, 2022, in accordance with terms specified under the private placement offer cum application letter.”
