Fintech startup Rio.Money is bought by Hyderabad-based Zaggle for INR 22 crores.
Zaggle, a publicly listed spend management company, is set to enter the consumer credit card market with the proposed acquisition of fintech startup Rio Money. According to reports, the deal for 100% of Rio.Money is valued at a cash consideration of Rs 22 crore.
The acquisition, subject to definitive agreements and customary conditions precedent, is expected to close within 60 days, with a possible 30-day extension by mutual agreement. If successful, this deal will mark a significant step in Zaggle's broader inorganic growth strategy, following its Rs 595 crore Qualified Institutional Placement (QIP) in 2024.
Rio Money, founded by Riya Bhattacharya and Vivek Amarnani in July 2023, operates solely in India. The startup has made a name for itself in the fintech sector, with a niche in enabling equated monthly instalments (EMIs) through credit payments on QR codes via UPI. The service is facilitated through the co-branded Yes Bank-Rio RuPay credit card, launched in partnership with Yes Bank and the National Payments Corporation of India (NPCI) in November 2024.
In a statement, Riya Bhattacharya, CEO of Rio Money, expressed her excitement about the acquisition, stating that it will enable them to take their innovative credit solutions to millions more users across India. She further added that the acquisition will make credit effortlessly accessible through UPI.
The acquisition is expected to facilitate Zaggle's entry into the consumer credit card market. In June, Zaggle made headlines with its acquisition of Pune-based Dice, an enterprise spend management platform, and golf-focused loyalty solutions provider GreenEdge, in a combined transaction valued at Rs 150 crore.
Rio Money reported a turnover of Rs 13 lakh for FY2023-24, and as of now, has a paid-up capital of Rs 11.33 lakh. However, there are no direct search results providing the founding dates for the startup company Rio Money.
The deal is not yet finalized, but if it goes through, it could be a game-changer for both companies. For Rio Money, it offers the opportunity to reach a wider audience and scale up its operations. For Zaggle, it presents an opportunity to diversify its portfolio and tap into the growing consumer credit card market in India.
As the details of the acquisition unfold, it will be interesting to see how this partnership shapes the future of consumer credit in India. Stay tuned for more updates on this developing story.
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