In a strategic move to strengthen its position in the Indian fintech space, B2B SaaS fintech company Zaggle has announced the acquisition of Rio Money, a Bengaluru-based digital banking startup, for a reported consideration of ₹22 crore. The acquisition, confirmed on July 30, is expected to provide Zaggle a direct entry into the consumer credit card segment via UPI, aligning with broader efforts to tap into India’s growing digital payments market.
Rio Money’s Strategic Value
Founded in 2020 by Rahul Raj and Chirag Gupta, Rio Money offers digital credit solutions integrated with Unified Payments Interface (UPI), one of India's fastest-growing digital transaction systems. The platform allows users to access instant credit and link it to UPI for seamless daily transactions, with a particular focus on Gen Z and millennial users.
The acquisition marks a significant pivot for Zaggle, which has traditionally catered to enterprise clients with offerings such as expense management, prepaid cards, and rewards platforms. With Rio Money’s integration, Zaggle is expected to broaden its consumer reach, tapping into the fast-evolving credit consumption trends enabled by UPI interoperability.
“We’re excited to welcome the Rio Money team to Zaggle. Their innovative UPI-linked credit infrastructure opens new avenues for us to expand into direct-to-consumer finance. This acquisition is a step forward in our vision to become a comprehensive fintech platform,” said Raj N, Founder and Chairman of Zaggle.
UPI: The Gateway to Consumer Credit
The deal comes at a time when the National Payments Corporation of India (NPCI) is promoting Credit on UPI, allowing consumers to link RuPay credit cards to their UPI apps for payments. This initiative is projected to disrupt India’s credit ecosystem by digitizing small-ticket transactions, which have traditionally been out of reach for credit card usage.
Zaggle aims to leverage Rio Money’s ready-built infrastructure to offer credit-on-UPI solutions that are faster to deploy, more affordable, and targeted toward new-to-credit segments in tier 2 and tier 3 cities.
According to industry estimates, India’s credit card base, currently at 120 million, is projected to double by 2030. With UPI clocking over 10 billion monthly transactions, combining credit and UPI is being viewed as the next major inflection point in Indian digital finance.
Financials and Deal Structure
The ₹22 crore acquisition will be funded through a mix of cash and equity, though the company has not disclosed the exact share split. According to PTI, this move is part of Zaggle’s post-IPO roadmap, following its ₹563 crore IPO in 2023, which helped it fuel product development and potential M&A opportunities.
Rio Money’s core team, including its co-founders, will join Zaggle’s consumer business vertical, ensuring product continuity and innovation. While Rio Money will be merged into Zaggle’s brand architecture, sources suggest that its core app and services will continue operating under a co-branded identity in the short term.
Competitive Landscape and Market Outlook
With this acquisition, Zaggle enters into direct competition with newer players such as Slice, Uni, and LazyPay, who are actively pushing UPI-based credit offerings to young consumers. Additionally, it places Zaggle in the company of banking behemoths like HDFC Bank and ICICI Bank, which are also developing credit-on-UPI solutions in collaboration with fintechs.
“Credit is the final frontier for UPI innovation. Whoever solves the delivery model first—especially for underserved and youth segments—stands to win big,” said a fintech analyst at a Mumbai-based venture capital firm.
The deal also reflects a broader industry trend, where fintech players are increasingly acquiring or partnering with digital banking startups to fast-track innovation, comply with regulations, and gain access to new customer demographics.
What’s Next for Zaggle?
Zaggle’s entry into the consumer space marks a strategic diversification. The company, which already claims to serve over 4,000 enterprise clients, including brands like HDFC Bank, Infosys, and Tata Motors, now aims to build a full-stack fintech platform offering business and personal finance tools under one umbrella.
Zaggle is also reportedly exploring partnerships with non-banking financial companies (NBFCs) to underwrite and expand its credit offerings. With Rio Money onboard, the company is expected to launch its first co-branded credit card product linked to UPI by the end of 2025, subject to regulatory approvals.