Zaggle, a spend management software-as-a-service provider, has reportedly secured INR 500m ($6m) in debt funding from Vivriti Asset Management.
With the funds, the company hopes to grow its products, bolster its working capital and foster its business growth, according to a report from VCCircle.
This investment will be amortised over the next 40 months, with Zaggle paying interest quarterly.
Zaggle recently filed its red herring prospectus, with the aim of an INR 7.5bn ($91m) initial public offering. This sale will see partial exits from VenturEast and GKFF Ventures.
The FinTech company offers three core product lines: Zoyer, Save and Propel. The Zoyer solution is a business spend management and embedded finance platform that helps firms boost efficiencies, improve cash flow and maximise financial performance.
The accounts payable and payments automation platform enables organisations to turn accounts payable into a data-led function.
Its Save platform helps employees save tax through flexible employee benefit plans. Companies can digitise employee tax benefit programs with a single card that can replace food coupons, food cards, fuel cards, travel vouchers and gift cards.
Finally, its Propel solution is an all-in-one solution for employee rewards and channel partner incentives. Its service offers automated rewards to increase employee engagement.
Speaking on the deal, said Vivriti Asset Management fund manager Mohamed Irfan said, “In successful tech companies, there is usually a small window where debt usually provides a good risk/reward opportunity. Vivriti Asset Management values business profitability, strong management, cash generation ability and sector tailwinds while investing – and Zaggle scores well on these.”
Another India-based FinTech to recently raise capital is Mintoak. The SaaS platform aimed at merchant services, scored $20m in its Series A funding round.
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