Yaap Digital to allocate up to ₹34 crore from proposed IPO proceeds for GoZoop acquisition

Yaap Digital, a digital marketing, content and technology services company, plans to use a significant portion of its proposed IPO proceeds to fund acquisitions, including GoZoop Online.

According to the Draft Red Herring Prospectus (DRHP) filed with NSE Emerge, the company will allocate up to ₹34 crore towards part payment for the GoZoop acquisition.

It also plans to spend ₹4.01 crore on setting up an AI-based short-form content hub and ₹16 crore to meet additional working capital needs. The rest of the proceeds will be used for further acquisitions, general corporate purposes and issue-related expenses.

The IPO comprises a fresh issue of up to 66,00,000 equity shares of ₹10 each through the book-building route. Socradamus Capital is the sole book-running lead manager, and MUFG Intime India is the registrar.

Founded in 2016, Yaap Digital operates in India, the UAE and Singapore under the ‘YAAP’ brand and employs more than 100 people. Its services include influencer marketing, content creation, performance marketing, media buying, UI/UX design and marketing analytics.

The company has expanded in recent years through acquisitions, including FFC Information Solutions, Brand Planet Consultants India, Yaap Digital FZE, Yaap Digital FZ LLC and Intnt Asia Pacific.

The company is promoted by Atul Jeevandharkumar Hegde, Sudhir Menon and Subodh Menon. In FY25, it reported revenue of ₹152.54 crore, up from ₹112.55 crore in FY24, while profit after tax rose to ₹11.93 crore from ₹2.51 crore a year earlier.