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Ventureast Sells Over 22 Million Shares of Zaggle in a Significant Block Deal

Ventureast offloads 22.27 lakh shares of fintech SaaS company Zaggle in a block deal worth INR 67.26 Cr, as the company shows strong financial growth and a promising market position.

Early-stage venture capital firm Ventureast has successfully divested 22.27 lakh shares of fintech SaaS company Zaggle in a substantial block deal valued at INR 67.26 crore. According to data from the National Stock Exchange (NSE), the shares were sold at a price of INR 302 each on Thursday, May 2. This considerable influx of shares into the market was eagerly acquired by several prominent investors, including ICICI Prudential, ACM Global Fund, Astorne Capital, and Tara Emerging Asia Liquid Fund.

ICICI Prudential was the largest buyer, acquiring 11.58 lakh shares for nearly INR 35 crore. ACM Global Fund followed with a purchase of 4.06 lakh shares amounting to INR 12.26 crore. Similarly, both Astorne Capital and Tara Emerging Asia Liquid Fund secured 3.31 lakh shares each, costing INR 10 crore.

Prior to this transaction, Ventureast held a 3.64% stake in Zaggle, equivalent to 44.54 lakh shares, as of the end of the March 2024 quarter. The block deal occurred shortly after Equirus Securities initiated coverage on Zaggle with a 'LONG' rating and a price target of INR 400. This represents a potential upside of more than 30% from the stock’s last closing price on the Bombay Stock Exchange (BSE) on Friday, May 3.

Zaggle, a prominent player in the fintech SaaS market, boasts a unique position with no significant competitors across all three of its product segments, according to Equirus Securities. The company’s diverse revenue streams and robust growth pipeline further underscore its market strength.

Financially, Zaggle has demonstrated remarkable performance, with its net profit skyrocketing by more than 10 times year-on-year (YoY) to INR 15.2 crore in the third quarter (Q3) of FY24. Additionally, its operating revenue surged 35.1% to INR 199.5 crore during the same period, up from INR 147.6 crore in the corresponding quarter of the previous fiscal year.

These impressive financial achievements have contributed to a bullish trend in Zaggle’s stock, which has risen over 37% on a year-to-date (YTD) basis.

Founded in 2011, Zaggle provides a comprehensive spend management and corporate employee benefits platform that helps businesses automate their financial operations and offers prepaid cards in collaboration with banking partners to facilitate employee rewards and incentives.

The market for spend management solutions is rapidly expanding, projected to grow from INR 8,200 crore in FY21 to INR 13,900 crore by FY27, indicating a promising future for companies like Zaggle.

On May 3, shares of Zaggle closed 1.32% higher at INR 306.15 on the BSE, reflecting the market's positive reception to the company’s ongoing progress and strategic moves.