Startup Originals Team
Hyderabad-based Zaggle Prepaid Ocean Services Limited, a well-known company in the spend management space, is expanding its footprint in the fintech sector with the acquisition of Rio.Money, a promising startup specializing in credit payment solutions via UPI. The deal, valued at Rs 22 crore, marks Zaggle’s strategic entry into the consumer credit card segment, complementing its existing business and broadening its product offerings.
About the Acquisition:
Zaggle has signed a non-binding term sheet to acquire 100% equity of Rivpe Technology Private Limited, which operates as Rio.Money, for Rs 22 crore in cash consideration. The agreement is expected to be finalized within 60 days, subject to the usual legal and regulatory approvals, with an option for a 30-day extension if mutually agreed.
This is part of Zaggle’s ongoing inorganic growth strategy, following its recent Rs 595 crore Qualified Institutional Placement (QIP) in 2024 and earlier acquisitions including Pune-based Dice and golf loyalty solutions provider GreenEdge.
Rio.Money’s Business and Technology:
Founded by Riya Bhattacharya and Vivek Amarnani in July 2023, Rio.Money focuses on enabling consumers to make credit payments easily through equated monthly installments (EMIs) on QR code payments via UPI. This innovative service is delivered through the co-branded Yes Bank–Rio RuPay credit card, launched in collaboration with Yes Bank and the National Payments Corporation of India (NPCI) in November 2024.
Rio.Money’s technology simplifies digital payments by facilitating credit-based transactions, thereby empowering consumers to access credit seamlessly while offering merchants quicker payments.
Financial Snapshot:
For the fiscal year 2023-24, Rio.Money reported a turnover of Rs 13 lakh, and has a paid-up capital of Rs 11.33 lakh. Despite being a relatively new startup, its unique positioning in credit payments via UPI highlights significant growth potential.
Strategic Importance for Zaggle:
The acquisition aligns with Zaggle’s goal to expand beyond spend management into consumer credit, tapping into the fast-growing digital payments and credit market in India. By integrating Rio.Money’s expertise in UPI-enabled credit solutions, Zaggle aims to offer enhanced financial products to its existing customer base and millions of new users across the country.
Zaggle stated that this deal would not only diversify its product portfolio but also strengthen its capabilities in UPI technology, accelerating its entry into the consumer credit card domain.
Leadership Insights:
Riya Bhattacharya, CEO of Rio.Money, expressed excitement about joining forces with Zaggle:
“This acquisition will accelerate our mission to make credit effortlessly accessible through UPI. Zaggle’s extensive reach and expertise provide us with the perfect platform to scale our innovative credit solutions across India, creating new possibilities for digital payments and consumer empowerment.”
Conclusion:
Zaggle’s acquisition of Rio.Money marks a significant step in the company’s evolution, enabling it to diversify into the consumer credit card market with cutting-edge UPI-based credit technology. This move is expected to strengthen Zaggle’s position as a fintech leader by combining spend management with seamless credit solutions, thereby unlocking new growth avenues in India’s rapidly evolving digital payment ecosystem.
