Zaggle acquires Bengaluru fintech startup Rio.Money

HYDERABAD: In a strategic move that will give it an entry into the consumer credit card business, Hyderabad-based spend management player Zaggle Prepaid Ocean Services acquired Bengaluru-based fintech startup Rivpe Technology Private Limited, known as Rio.Money, for a cash consideration of Rs 22 crore.The acquisition, which involves purchasing 100% of the equity shares and voting rights, is subject to the execution of definitive agreements and the fulfilment of certain conditions precedent, Zaggle informed the bourses on Tuesday.The transaction is expected to be completed within a period of 60 days from the date of execution of the term sheet and can be further mutually extended by 30 days. Zaggle said the acquisition of Rio.Money, which was set up in 2023 and specialises in UPI payments along with co-branded consumer credit cards, will enable its foray into the rapidly expanding consumer credit card space via UPI.

“The acquisition marks a strategic milestone, signalling our entry into the rapidly evolving consumer fintech space. Rio brings deep expertise in UPI solutions and the consumer credit cards space, with differentiated product offerings,” said Dr Raj P Narayanam, founder & executive chairman, Zaggle. The move will enable it to offer credit cards to over 3.2 million users across its over 3,400 corporate clients to drive stronger loyalty, engagement, and value creation.The acquisition is part of Zaggle’s strategic deployment of Rs 595 crore raised through its QIP and is aligned with its roadmap to emerge as a $1 billion revenue enterprise in the next 5–7 years.