Acquisition Fintech

Zaggle Announces 100% Acquisition Of Fintech Startup Rio Money

• ByStartupStory     |    December 5, 2025

₹22 Cr Deal Accelerates UPI-Linked Consumer Credit Expansion

Listed fintech SaaS company Zaggle Prepaid Ocean Services Ltd. has signed a definitive agreement to acquire 100% of Bengaluru-based fintech startup Rio Money (Rivpe Technology Pvt Ltd.) for ₹22 crore ($2.6 million), marking its strategic entry into the rapidly growing UPI-linked consumer credit card segment. The cash deal, approved by Zaggle’s board, involves purchasing 81,429 equity shares and 16,407 compulsorily convertible preference shares, expected to close within 120 days subject to customary conditions.

UPI Credit Cards For 3.2 Mn Corporate Users

Founded in 2023 by Riya Bhattacharya, Rio Money specializes in UPI payments integrated with co-branded consumer credit cards, enabling seamless credit on UPI rails. The acquisition extends Zaggle’s spend management platform—serving 3,400+ corporates and 3.2 million users—to retail credit, leveraging decade-long Yes Bank partnership for issuance.

Zaggle Founder & Chairman Raj P. Narayanam stated: “Rio brings UPI expertise and differentiated credit products, enabling innovation in corporate and consumer segments.” Bhattacharya added: “Zaggle supercharges our mission for effortless UPI credit access.”

Post-acquisition, Zaggle commits ₹75 crore investment into Rio for scaling, aligning with ₹595 crore QIP proceeds targeting $1 billion revenue in 5-7 years.

Strategic Synergies In Digital Lending Boom

Zaggle processes billions in corporate spends; Rio adds B2C UPI-credit infrastructure amid NPCI’s push (credit-on-UPI transactions up 10x YoY). FY24 Rio revenue: ₹0.13 crore; Zaggle FY25 revenue growth accelerates via cross-sell.

Precedents: June acquisitions of Dice (spend management) and GreenEdge (loyalty) for ₹150 crore. No regulatory approvals needed; non-related party transaction.

Positioning For Consumer Fintech Dominance

India’s UPI-credit market hits ₹50,000 crore volumes; Zaggle-Rio combines enterprise scale with retail innovation. Competitive edge: unified ledger for corporate-to-consumer transition.

Challenges: credit risk management, regulatory evolution. Strengths: established rails, bank partnerships.

This tuck-in acquisition cements Zaggle’s evolution from spend controls to comprehensive digital finance, capturing UPI-credit tailwinds for multi-billion opportunity.

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