SoftBank-Backed Juspay Buys LotusPay To Strengthen Its BFSI Space

SoftBank-backed fintech company Juspay has bought merchants and banks-focussed software provider LotusPay to boost its banking, financial services and insurance (BFSI) vertical.

Juspay acquired Y Combinator-backed LotusPay in an all-cash deal. However, the financial transactions of the deal were not disclosed.

The acquisition is aimed at strengthening Juspay’s offerings to the BFSI segment and merchants, with a particular focus on enhancing its recurring payment capabilities, the company said in a statement.

Founded in 2016 by Atma Krishna, LotusPay offers cloud-based software for merchants and banks. Through this, it enables banks, financial institutions and merchants to collect recurring payments for loans, investments, insurance premiums and subscriptions. 

The startup caters to leading banks, NBFCs including HDB Financial Services, InCred Finance and IIFL Samasta Finance among others.

In 2023, LotusPay registered more than 5 Mn mandates and processed over 20 Mn transactions, surpassing a total value of INR 20,000 Cr, the statement added.

Juspay cofounder and COO Sheetal Lalwani said, “We can now serve our enterprise clients (banks, merchants, NBFCs) with a complete suite of recurring payment options with a single integration.”

According to Lalwani, LotuPay’s approach to product and technology has seamlessly aligned with Juspay’s tenets. The company aims to leverage this acquisition to serve the customers in the growing market of recurring payments. 

Founded in 2012 by Vimal Kumar and Ramanathan RV, Juspay is a full-stack digital payments software-as-a-service (SaaS) platform which caters to several leading companies  in various sectors such as BFSI, ecommerce, travel, fintech, airlines etc. 

The company claims to process 100 Mn+ daily transactions worth $500 Bn on an annualised basis.

In 2022, it received an in-principle nod from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA). 

According to Inc42’s State Of Indian Fintech Report, Q3 2023, the digital payments market size is expected to reach $253 Bn+ by 2030 at a 5% CAGR to cover 12% of the fintech market.

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