Hyderabad-based company Zaggle purchases fintech startup Rio.Money for 22 crore Indian rupees.
In a significant move, Zaggle Prepaid Ocean Services Limited, a publicly listed spend management company, has announced its intention to acquire fintech startup Rivpe Technology Private Limited, better known as Rio.Money. The deal, subject to definitive agreements and customary conditions precedent, is expected to enhance Zaggle's product offerings for its existing user and customer base.
Rio Money, founded by Riya Bhattacharya and Vivek Amarnani in July 2023, operates in the fintech sector, enabling equated monthly instalments (EMIs) through credit payments on QR codes via UPI. The startup, which operates solely in India, reported a turnover of Rs 13 lakh for FY2023-24 and has a paid-up capital of Rs 11.33 lakh.
The acquisition, for a cash consideration of Rs 22 crore, will facilitate Zaggle's entry into the consumer credit card market. Riya Bhattacharya, CEO of Rio Money, expressed her excitement about joining forces with Zaggle, stating that the acquisition will make credit effortlessly accessible through UPI.
This move is part of Zaggle's broader inorganic growth strategy. In June, Zaggle acquired Pune-based Dice and golf-focused loyalty solutions provider GreenEdge in a combined transaction valued at Rs 150 crore. Zaggle further strengthened its position in 2024 with the completion of a Rs 595 crore Qualified Institutional Placement (QIP).
The proposed deal is expected to close within 60 days, with a possible 30-day extension by mutual agreement. The acquisition of Rio Money is expected to be beneficial for both parties, as it will provide Zaggle with a new avenue for growth and Rio Money with the resources and infrastructure of a larger company.
Notably, the acquisition of Rio Money is not the first collaboration between the two companies. In November 2024, they launched the co-branded Yes Bank-Rio RuPay credit card in partnership with Yes Bank and the National Payments Corporation of India (NPCI). This card facilitates the service offered by Rio Money.
As Zaggle continues to expand its operations, the acquisition of Rio Money marks an important step in its journey towards becoming a leading player in the consumer credit card segment.
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