ZAGGLE

Prepaid Ocean Services Limited, a Hyderabad-based B2B SaaS fintech firm specializing in prepaid solutions, has approved a fundraising plan through convertible warrants. On October 3, 2025, the board sanctioned issuing up to 10,58,201 warrants at Rs 567 each (including a Rs 566 premium), targeting Rs 59.99 crore (nearly Rs 60 crore). Each warrant converts into one fully paid equity share with a Rs 1 face value. The issuance is preferential, allocated to the Promoter Group (RAN Ventures Private Limited, infusing Rs 20 crore) and Non-Promoter entity (Bennett Coleman and Company Limited/BCCL, contributing Rs 40 crore via a strategic brand-led investment). This move aims to bolster the company's capital structure and support growth. As of June 30, 2025, Zaggle has issued over 50 million prepaid cards, serves 3,500+ corporate clients, and supports a workforce of 25 Lakh. The plan complies with SEBI regulations, with October 1, 2025, as the relevant date. Shareholder approval is pending at an Extraordinary General Meeting (EGM) on October 31, 2025, via video conferencing. Additionally, Zaggle entered a Rs 15 crore loan agreement with Dice Enterprises for working capital. My Opinion This warrants issue signals strong confidence in Zaggle's trajectory, especially with promoters investing at a premium, underscoring undervaluation and long-term alignment. The BCCL partnership adds strategic value, potentially enhancing brand visibility in fintech. For investors, it's positive for capital infusion amid Zaggle's growth in prepaid services, but dilution risks exist upon conversion. Overall, it's a smart, low-debt funding strategy in a competitive market—worth monitoring post-EGM for execution.