Zaggle To Acquire Rio.Money To Enter Consumer Credit Card Market

Fintech SaaS major Zaggle is acquiring fintech startup Rio.Money for INR 22 Cr to enter the consumer credit card market.

In an exchange filing, Zaggle said it has signed a non-binding agreement to acquire a 100% stake in Rivpe Technology Pvt Ltd (Rio.Money). 

“The acquisition not only expands our product offerings for existing users and customer base, it also adds a deep expertise on the UPI and facilitates our entry into the consumer credit card market,” Zaggle said.

Founded in 2023 by Navi’s founding team member Riya Bhattacharya and angel investor Vivek Amarnani, Rio.Money offers UPI payments and co-branded credit cards. The startup promotes UPI transactions via credit cards.

It issues RuPay cards in partnership with Yes Bank. The card has no joining or annual fee, a limit of up to INR 5 Lakh, and offers cashback via Rio Coins. 

While Zaggle didn’t provide the startup’s FY25 numbers, it said Rio.Money had a turnover of INR 13 Lakh in FY24. 

Zaggle said the acquisition will help it grow faster in the consumer payments space. The company also plans to build on its long-term relationship with Yes Bank.

The listed company raised INR 595 Cr via qualified institutional placement in December last year. A part of it was to be used for acquisitions and investments, as the company eyes a $1 Bn revenue in the next 5-7 years.

In Q4 FY25, Zaggle’s consolidated profit after tax (PAT) zoomed 62% to INR 31.1 Cr from INR 19.2 Cr in the year-ago quarter on the back of a sharp increase in its top line. Operating revenue jumped nearly 51% to INR 412.1 Cr during the quarter from INR 273.4 Cr in the same quarter of previous year. 

Founded in 2011 by Raj Narayanam, Zaggle provides a spend management platform (Zoyer), a corporate employee benefits platform (Propel), employee expense management platform (Save), among others. Its offerings help businesses automate their accounts and issue prepaid cards. Its portfolio of SaaS products also includes tax and payroll software.

It works with over 3,400 companies and serves more than 3.2 Mn users. Now, it plans to use this base to promote Rio.Money’s UPI credit card.

Notably, Zaggle has been on an acquisition spree over the past year. In Q2 FY25, it increased its stake in Span IT Solutions by 53.32%, taking its total ownership to 98.3%. In December quarter of 2024, it acquired an additional 12.34% stake in digital payments firm Mobileware Technologies for INR 7.25 Cr, taking its total investment to INR 22.8 Cr for a 38.3% stake. 

Shares of Zaggle ended today’s trading session 7.2% higher at INR 396 on the BSE.