Fintech startup Rio.Money has been acquired by Hyderabad-based company Zaggle for an amount of 22 crore Indian rupees.
In a strategic move to bolster its presence in the financial sector, Zaggle Prepaid Ocean Services Limited, a publicly listed spend management company, has announced the acquisition of fintech startup Rivpe Technology Private Limited, better known as Rio.Money. The deal, worth a cash consideration of Rs 22 crore, is expected to close within 60 days, with a possible 30-day extension by mutual agreement.
Rio Money, founded by Riya Bhattacharya and Vivek Amarnani in July 2023, operates in the fintech sector with a niche in enabling equated monthly instalments (EMIs) through credit payments on QR codes via UPI. The company partnered with US Bank and the National Payments Corporation of India (NPCI) in November 2024 to launch the co-branded US Bank-Rio RuPay credit card.
The acquisition will facilitate Zaggle's entry into the consumer credit card market and is part of the company's broader inorganic growth strategy, following its Rs 595 crore Qualified Institutional Placement (QIP) in 2024.
Riya Bhattacharya, CEO of Rio Money, expressed her excitement about joining forces with Zaggle, stating that the acquisition will make credit more accessible through UPI. She also expressed her enthusiasm about the potential to enhance product offerings for Zaggle's existing user and customer base.
Rio Money reported a turnover of Rs 13 lakh for FY2023-24, and the company has a paid-up capital of Rs 11.33 lakh. The service is facilitated through the co-branded US Bank-Rio RuPay credit card.
The deal is subject to definitive agreements and customary conditions precedent. In June, Zaggle made headlines with the acquisition of Pune-based Dice and golf-focused loyalty solutions provider GreenEdge in a combined transaction valued at Rs 150 crore.
Notably, Rio Money operates solely within India. The co-branded US Bank-Rio RuPay credit card was launched in partnership with US Bank and the National Payments Corporation of India (NPCI) in November 2024. The acquisition of Rio Money by Zaggle is expected to significantly contribute to the expansion of Zaggle's offerings in the Indian market.
As Zaggle ventures into the consumer credit card market, it aims to leverage Rio Money's unique business model and innovative technology to provide seamless credit solutions to its customers. The acquisition is set to redefine the landscape of the Indian financial sector, making credit more accessible and convenient for all.
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