Software-as-a-service startup Zaggle, which filed its preliminary papers for initial public offering in late last year, has raised Rs 50 crore in debt from Vivriti Asset Management.
Zaggle, which offers products for companies to manage their business expenses, aims to use the capital to grow its products, including its recently launched accounts payable platform 'Zoyer', working capital and business growth.
Through its performing credit fund, Vivriti purchased 500 secured, unlisted, rated non-convertible debentures of face value of Rs 10 lakh each. The investment will amortise over the next 40 months, with Zaggle paying interest quarterly, the company said.
The capital-raise comes about two months after Zaggle filed its draft red herring prospectus with the market regulator for Rs 750 crore public offering, per sources, which will see partial exits from VenturEast and GKFF Ventures.
Vivriti provides debt capital to mid-sized operating companies that have proven business models and operating cash-flows but lacks access to mainstream debt markets.
"In successful tech companies, there is usually a small window where debt usually provides a good risk/reward opportunity," said Mohamed Irfan, Fund Manager, Vivriti Asset Management. “Vivriti Asset Management values business profitability, strong management, cash generation ability and sector tailwinds while investing - and Zaggle scores well on these.”
Zaggle posted operating revenue of Rs 371.3 crore in financial year 22, up 55% from a year ago. Its profit for the year doubled to Rs 41.9 crore. It competes with Divvy, Brex, Pleo, Ramp, Coupa, Expensify, Fleetcor, Edenred, Wex, and Happay and caters to banking and finance, healthcare and manufacturing, among others.
Indiejewel Fashions Pvt Ltd, which operates consumer silver-jewellery focused startup Giva, on Thursday said it has secured funding of Rs 40 crore (around $4.9 million) from venture debt fund Alteria Capital.
Bengaluru-based Giva offers minimalist and contemporary silver-jewellery products crafted from high-quality sterling silver. It currently has more than 50 offline touchpoints and aims to cross 200 by the end of this year. The company was founded in 2019 by Ishendra Agarwal, Nikita Prasad and Sachin Shetty.
The firm, which also counts A91, Aditya Birla Ventures, Anicut and India Quotient as its investors, has so far raised $17.5 million till date. The latest round comes about a year after Giva raised an undisclosed amount in a Series B round of funding.
In January 2022, it secured $10 million as a part of its Series A funding led by direct-to-consumer (D2C) focused venture capital funds Sixth Sense Ventures and A91 Partners.
“We plan to deploy the raised capital in driving channel expansion and further expanding our range of exquisitely crafted jewellery products,” Agarwal said.
The brand competes with Carat Lane, Bluestone, Melorra and Kushal’s, among others.
“We believe Giva is well poised to play a pivotal role in bringing fine jewellery to the masses in India and has been able to make great inroads in both offline and online channels across the country,” said Ankit Agarwal, Managing Partner, Alteria Capital.
In October last year, Alteria Capital had announced the first close of its Rs 1000 crore-third fund. It manages nearly Rs 3,800 crore ($475 million) across its venture debt funds.
The venture debt firm has backed over 120 companies, which includes Rebel Foods, Mensa Brands, Believe, Mosaic Wellness, Sleep Company, Niyo, Country Delight, Kapiva and Jupiter, among others.