Fintech Startup Xoxoday Bags $30 Mn From Giift And Apis Partners LLP To Expand Overseas Business

Fintech startup Xoxoday has secured $30 Mn from Giift, a provider of loyalty management solutions across the world, backed by Apis Partners LLP.

With this investment, Giift and Apis Partners LLP have acquired a significant strategic interest in Xoxoday. The partnership included both primary and secondary capital components, and the collaboration will enable both Giift and Xoxoday to enlarge their service offerings and accelerate growth globally, said the Bengaluru-based startup.

Founded in 2012 by Sumit Khandelwal, Manoj Agarwal, Abhishek Kumar, and Kushal Agrawal, Xoxoday offers technology infrastructure to enable businesses to automate rewards, incentives, and payouts across the value chain.

Matching the market demand, the startup has designed three software as a service (SaaS) offerings. These include:

• Plum, a horizontal platform infrastructure, automating rewards, incentives, and payouts programs  
• Empuls, a vertical platform enabling organisations to build an engaged workplace, where everyone is aligned, motivated, and connected
• Compass, a platform automating and gamifying sales incentives and commissions for sales teams.

“Xoxoday is a unique and powerful loyalty platform for employee, sales and consumer rewards. Our partnership with Xoxoday will enable Giift to offer the most comprehensive engagement and loyalty solution available in the market,” said Laurent Xatart, cofounder and CEO of Giift, a global loyalty marketplace.

“Both Giift’s loyalty infrastructure and Xoxoday’s rewards infrastructure cover the length and breadth of businesses across the entire lifecycle for employees, channel partners, and consumers,” said Sumit Khandelwal, cofounder and CEO Xoxoday.

Whereas Matteo Stefanel, cofounder and managing partner, Apis Partners is of the opinion that Xoxoday’s impressive and self-financed growth over the last decade is due to its team that has been executing its plans.

Udayan Goyal, Apis Partners cofounder, and managing partner is of the view that the space occupied by Xoxoday is becoming important at the time when the world is transitioning to a hybrid work environment. “The convergence with financial services further leverages Apis’ sector-specific expertise in fintech,” he said.

So far, Xoxoday has worked with over 2, 000 clients, across more than 10 countries with over 2.5 Mn users. Headquartered in Bengaluru, Xoxoday is a 270-member strong team with four global offices in San Francisco, Dublin, Singapore.

Meanwhile, fintech (financial technology) startups recently have made quite a buzz in the market by either securing funds from investors or going for acquisitions. For instance, Mosambee had acquired BNPL-focused fintech startup Benow recently.

Likewise, on February 18, Propelld had raised $35 Mn in Series B funding led by WestBridge Capital with existing investors Stellaris Venture Partners and India Quotient. Last month, Kissht too had raised $13.2 Mn in funding led by Trifecta Capital and Northern Arc.

As far as acquisitions are concerned, fintech unicorn Pine Labs has recently acquired Mumbai-based Qfix Infocomm, an online payments startup. 

Further, India’s overall fintech market opportunity is estimated to be $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025. Of this, lending tech is likely to account for 47% ($616 Bn), followed by insurtech at 26% ($339 Bn) and digital payments at 16% ($208 Bn). 

Among these three, insurance tech is the fastest-growing fintech sub-segment in terms of market opportunity, growing at a CAGR of 57%, followed by investment tech (44%) and fintech SaaS (40%).