Zaggle Expands Consumer Credit Card Segment with Acquisition of Rio.Money
Zaggle Prepaid Ocean Services Limited, a publicly traded expenditure management company, is making significant strides in the consumer credit card market. The company has recently announced its acquisition of the fintech startup Rivpe Technology Private Limited, commonly known as Rio.Money, aiming to enhance its product offerings and market reach.
Based in Hyderabad, Zaggle has signed a non-binding term sheet to acquire 100% of Rio.Money for a cash consideration of ₹22 crores. The deal, which is subject to final agreements and customary conditions, is anticipated to close within 60 days, potentially extendable by 30 days upon mutual consent.
About Rio.Money
Established in July 2023, Rio.Money operates within the fintech landscape, focusing on facilitating monthly payments and emissions through QR codes using UPI (Unified Payments Interface). The startup has partnered with Yes Bank and the National Payments Corporation of India (NPCI), having launched a co-branded credit card in November 2024.
The founders, Riya Bhattacharya and Vivek Amarnani, have steered Rio.Money to report a turnover of ₹13 lakh for the fiscal year 2023-24, with a paid-up capital of ₹11.33 lakh. Currently, the company operates exclusively in India, targeting a niche market segment.
Strategic Benefits of the Acquisition
Zaggle’s acquisition of Rio.Money not only amplifies its existing user and customer product offerings but also brings substantial expertise in UPI transactions. This strategic move positions Zaggle to enter the consumer credit card market more robustly, expanding its competitive advantage within the fintech sector.
“We are thrilled to join forces with Zaggle, a leader in expenditure management,” said Riya Bhattacharya, CEO of Rio.Money. “This acquisition aligns perfectly with our vision of providing seamless credit through UPI. With Zaggle’s extensive reach and expertise, we are excited to introduce our innovative credit solutions to millions of users across India, paving the way for new digital payment avenues and empowering consumers.”
Zaggle’s Inorganic Growth Strategy
This acquisition is a part of Zaggle’s broader inorganic growth strategy, following a successful Qualified Institutional Placement (QIP) that raised ₹595 crores in 2024. Earlier in June, the company expanded its portfolio by acquiring Pune-based Dice, a platform dedicated to corporate expense management, and Golf Greenedged, a provider of golf loyalty solutions, in a combined deal valued at ₹150 crores.
Conclusion
The acquisition of Rio.Money represents a pivotal step for Zaggle in bolstering its presence within the consumer credit card segment. As the fintech ecosystem continues to grow, partnerships and acquisitions like this will play a crucial role in shaping the market landscape, facilitating innovative solutions for users across India.