Razorpay acquires PoshVine marking its 7th acquisition

• ByStartupStory     |    September 28, 2022

Razorpay, a business-focused payments, and banking platform, on Tuesday, disclosed that it has acquired PoshVine to expand into the loyalty and rewards management space. The value of the deal was not stated by the companies.

PoshVine was founded in 2011 and provides banks, payment networks, and companies with payment-linked loyalty and engagement solutions. PoshVine creates engagement solutions for financial institutions, retailers, and consumers. More than 5,000 merchants in India and Southeast Asia have been made possible by the company’s loyalty-as-a-service offering, which the company has provided to more than 20 major financial institutions and networks like SBI, AU Bank, HDFC Bank, IDFC FIRST Bank, DBS, Visa, and Amex (South East Asia).

Razorpay was founded in 2014 by IIT Roorkee grads Shashank Kumar and Harshil Mathur to give technological payment solutions to over eight million enterprises. It is a comprehensive financial services firm that assists Indian companies with payments and banking.

Welcoming PoshVine and commenting on the acquisition, Shashank Kumar, MD, and Co-founder of Razorpay, said, “Our mission has always been to build a financial ecosystem for businesses around payments and banking. Loyalty has been a core need of banks and merchants, and our acquisition of Poshvine is a key step towards enabling further growth for our partner businesses.” “With an increasing percentage of customer spends moving online, there is a massive opportunity to help banks and merchants engage with their customers across the lifecycle using payment-linked loyalty including rewards, offers, and redemption of loyalty points,” he added.

With the goal of establishing a payment-linked loyalty infrastructure, the whole PoshVine team has decided to join Razorpay. Banks and shops alike have become as major players in the payments system as a result of changing consumer expectations. With over 76.8 million credit cardholders who spent approximately Rs 1.13 trillion through online and PoS (point of sale) payments, there is a growing market for banks and retailers to concentrate on creating unique personalized purchase experiences for end customers and increasing customers’ spending. Investing in rewards and loyalty management systems is one of the most promising ways to increase customer retention and lifetime value.

This is Razorpay’s 7th acquisition. Previously, in August 2022, Razorpay bought Ezetap, a firm that streamlines the process of making offline payments at a physical point of sale. Prior to then, it had purchased IZealiant Technologies, a payments technology solutions provider for banks situated in Pune, India. Among the many fintech companies that have been acquired in the past are the Malaysian firm Curlec (a recurring revenue platform), the American firm TERA Finlabs (an artificial intelligence (AI) based risk tech SaaS Platform), the British firm Opfin Software (a payroll and human resources management solution), and the Canadian company ThirdWatch (fraud analytics AI platform).

“While we have introduced significant innovations focused primarily on Banks, we have a large opportunity to deepen our relationships with both Banks and Merchants and help them maximize their share of spends,” said Richik Nandi, co-founder, and CEO of PoshVine.

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