Zaggle Snaps Up Rio Money for ₹22 Cr – UPI Credit Cards & ₹75 Cr Infusion to Supercharge Consumer Fintech Empire!
In a strategic masterstroke that’s blending enterprise muscle with consumer flair, listed fintech powerhouse Zaggle Prepaid Ocean Services Ltd. has inked definitive agreements to acquire 100% of Rivpe Technology Pvt. Ltd., the parent entity behind innovative digital banking startup Rio.Money, for a cash consideration of ₹22 crore. Announced via BSE filing on December 4, 2025, this all-equity buyout—subject to the final Share Purchase Agreement—catapults Zaggle into the sizzling UPI credit arena, unlocking RuPay-powered cards and credit lines for its 3.5 million users. But that’s not all: Zaggle is committing up to ₹75 crore in phased infusions to turbo-boost Rio’s tech stack, product roadmap, and go-to-market blitz, eyeing a seamless fusion of corporate spend smarts with retail credit dreams.
Founded in 2011 by serial entrepreneur Raj P. Narayanam (Executive Chairman), Zaggle has long dominated B2B fintech with its SaaS suite for expense automation, prepaid cards, digital rewards, and employee perks—issuing over 50 million cards to 3,600+ corporates across banking, healthcare, tech, and manufacturing. With FY25 revenues clocking ₹1,000+ crore and a market cap hovering at ₹2,500 crore post its 2024 IPO, Zaggle’s playbook screams inorganic growth: This marks its third bolt-on in 18 months, following the ₹150 crore swoop on Pune’s Dice (enterprise spend) and golf loyalty firm GreenEdge in June and September 2025, respectively. “The acquisition of Rio.Money is a strategic cornerstone in our ambition to build one of India’s most comprehensive fintech ecosystems,” Narayanam declared, highlighting UPI’s “transformative” edge for credit distribution.
Enter Rio.Money: Co-founded in 2023 by Riya Bhattacharya (CEO, ex-BCG) and Vivek Amarnani (ex-Flipkart), this Bengaluru whiz-kid specializes in democratizing credit via UPI QR rails and co-branded Rupay cards—think instant loans scanned into everyday payments, backed by NPCI’s interoperable magic. With seed fuel from Blume Ventures and Village Global, Rio has quietly onboarded thousands of users, focusing on underserved retail segments where traditional cards falter. “We’re excited to join hands with Zaggle, a powerhouse in spend management. This synergy will scale our UPI-native credit infra exponentially,” Bhattacharya enthused. Post-deal, Rio’s stack integrates with Zaggle’s Yes Bank ties, enabling seamless B2B-to-B2C pivots—like corporate wallets morphing into personal credit lines.
The ₹97 crore total outlay (acquisition + investment) breaks down surgically: The ₹22 crore cash haul nabs Rio’s full diluted capital, while the ₹75 crore war chest targets product enhancements (AI-driven credit scoring), tech upgrades (UPI 2.0 compliance), GTM expansion (targeting 10x user growth), and consumer offerings (embedded finance for e-comm giants). Avinash Godkhindi, MD & CEO, Zaggle, nailed the vision: “Rio’s consumer credit and UPI prowess aligns seamlessly with our 3.5 million-strong user base, accelerating entry into new segments.” This isn’t bolt-on fluff—it’s a calculated leap into India’s $200 billion digital payments pie, where UPI credit volumes hit ₹50,000 crore in 2025 alone.
Zaggle’s M&A spree, funded partly by its ₹595 crore QIP in July 2025, underscores a maturing playbook: Acquire niche innovators, infuse capital, and scale via its 50 million+ card ecosystem. Risks? Integration hiccups and RBI’s tightening on unsecured credit. But with 90%+ retention in B2B and Rio’s low-default UPI model, upside glimmers: Analysts peg combined ARR at ₹200 crore by FY27, potentially minting a $1 billion valuation.
As fintech converges—enterprise tools meeting consumer wallets—this Rio rendezvous could redefine Zaggle as India’s “spend-to-credit” king. Narayanam, ever the chess master, quipped: “Innovation isn’t siloed; it’s symbiotic.” Deal closure by Q1 2026? The fintech fusion is just warming up.
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Last Updated on: Saturday, December 6, 2025 4:10 pm by Business Max Team | Published by: Business Max Team on Saturday, December 6, 2025 4:10 pm | News Categories: Startup
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