Early-stage venture capital firm VenturEast sold 22.27 lakh shares of fintech SaaS startup Zaggle in a block deal worth INR 67.26 crore.
As per the NSE data, Ventureast Proactive Fund LLC sold the shares at INR 302 apiece on Thursday (May 2). ICICI Prudential, ACM Global Fund, Astorne Capital and Tara Emerging Asia Liquid Fund lapped up the shares that flooded the market.
While ICICI Prudential picked up 11.58 Lakh shares for nearly INR 35 Cr, ACM Global bought 4.06 Lakh shares at INR 12.26 crore. On similar lines, both Astorne Capital and Tara Emerging Asia Liquid Fund picked up 3.31 lakh shares each for INR 10 crore.
Ventureast held a 3.64% stake, or 44.54 lakh shares, in the fintech SaaS company at the end of the March 2024 quarter.
The block deal came just days after brokerage Equirus Securities initiated coverage on the listed startup with a ‘LONG’ rating and a price target of INR 400, an upside of more than 30% from the stock’s last close on the BSE on Friday (May 3).
Noting that Zaggle has no meaningful competitor with a presence in all three of its product segments, the brokerage said that its revenue streams exhibit diversification through multiple channels and a healthy growth pipeline.
Zaggle saw its net profit surge more than 10X year-on-year (YoY) to INR 15.2 Cr in the third quarter (Q3) of the financial year 2023–24 (FY24). Meanwhile, operating revenue jumped 35.1% to INR 199.5 Cr during the period under review as against INR 147.6 Cr in the corresponding quarter of the previous fiscal.
Based on these two factors, the company’s shares have been on an upward swing on the bourses. The stock has gained over 37% on a year-to-date (YTD) basis.
Founded in 2011, Zaggle is a spend management and corporate employee benefits platform. It helps businesses automate their accounts and issue prepaid cards, in partnership with banking partners, to reward their employees with incentives and gifts.