IPO-bound B2B fintech startup Zaggle has raised INR 50 Cr in debt funding from alternative investment fund platform Vivriti Asset Management (VAM).

Zaggle will use the fresh capital to grow its products such as the newly-launched accounts payable platform ‘Zoyer’. Zoyer is an integrated data driven, SaaS based business spend management platform with embedded automated finance capabilities in core invoice to pay workflows.

The fresh funds will also be used for working capital requirements and business growth.

The investment was made through purchase of debentures via VAM’s performing credit fund and will be amortised over the next 40 months, paying interest quarterly, according to a statement.

Founded in 2011, Zaggle is a spend management and corporate employee benefits platform. The fintech startup helps businesses automate their accounts and issues prepaid cards, in partnership with banking partners, for businesses to reward their employees with incentives and gifts.

In December, Zaggle filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

According to the draft documents, the startup is putting fresh equity worth INR 490 Cr for sale. The public issue will also comprise an offer for sale (OFS) for 10.5 Mn shares.

Zaggle’s profit after tax (PAT) jumped 2.2X to INR 41.92 Cr in the financial year 2021-22 (FY22) from INR 19.33 Cr in FY21.

Revenue from operations rose to INR 371.25 Cr from INR 239.97 Cr in FY21, while total revenue grew 1.5X to INR 371.66 Cr from INR 240.29 Cr in the previous fiscal year.

The debt funding comes at a time when the Indian startup ecosystem is witnessing a prolonged funding winter. As a result, startups are finding it hard to raise fresh capital. As per Inc42 data, Indian startups raised a mere $693.47 Mn funding in February, a decline of 81% year-on-year and 28.53% month-on-month.