Zaggle's Fintech Surge: ₹22 Crore Acquisition of Rivpe Technology to Unlock UPI and Credit Card Growth!

Zaggle Prepaid Ocean Services Ltd announced its strategic move to acquire Rivpe Technology Pvt Ltd for a consideration of up to ₹22 crore. This acquisition includes purchasing 100% of Rivpe's fully diluted equity and preference shares, upon which Rivpe will become a wholly owned subsidiary of Zaggle.

In conjunction with the acquisition, Zaggle's board also approved an additional investment of up to ₹75 crore in Rivpe, to be disbursed in tranches. The company stated that this deal is poised to significantly expand its product suite for existing users and strengthen its foothold in the competitive fintech ecosystem. Key benefits include gaining expertise in UPI payments and enabling an entry into the consumer credit card segment, areas critical for future growth in digital finance.

Acquisition Details

• Zaggle Prepaid Ocean Services Ltd has agreed to acquire Rivpe Technology Pvt Ltd.
• The total consideration for the acquisition is up to ₹22 crore.
• This includes the purchase of 81,429 equity shares and 16,407 compulsorily convertible preference shares.
• Upon completion, Rivpe Technology will operate as a wholly owned subsidiary of Zaggle.

Strategic Investment

• An additional investment of up to ₹75 crore is approved for Rivpe.
• This investment will be deployed in one or more tranches.
• It is intended to support Rivpe's growth and integration with Zaggle's operations.

Rationale and Expansion

• The acquisition aims to broaden Zaggle's existing product suite for its user base.
• It will expand Zaggle's presence within the dynamic fintech ecosystem.
• Expertise in UPI payments will be gained, a crucial digital payment method.
• The deal facilitates entry into the consumer credit card segment.

Target Company Overview

• Rivpe Technology Pvt Ltd was incorporated in July 2023.
• It reported a revenue of ₹0.98 crore in the financial year 2025.
• The company operates exclusively in India, focusing on digital payments and co-branded credit offerings.

Deal Mechanics

• The transaction is not classified as a related-party transaction.
• No specific regulatory approvals are required for this deal.
• Zaggle anticipates the transaction to be completed within 120 days.
• Finalization is subject to the successful execution of the share purchase agreement.

Stock Price Movement

• Following the announcement, shares of Zaggle Prepaid Ocean Services Ltd closed at ₹366 on the NSE.
• The stock saw a marginal increase of 0.18% after the news.

Impact

• This acquisition is expected to significantly enhance Zaggle's competitive position in the Indian fintech market.
• By integrating UPI and credit card capabilities, Zaggle can offer more comprehensive financial solutions to its customers, potentially driving user acquisition and retention.
• The move could lead to increased revenue streams and market share for Zaggle in the rapidly evolving digital payments and credit landscape.
• Impact Rating: 7/10

Difficult Terms Explained

• Acquisition: The act of one company purchasing most or all of another company's shares to gain control.
• Consideration: The value (usually money) paid by a buyer to a seller in exchange for goods or services.
• Equity Shares: The most common type of stock, representing ownership in a company.
• Compulsorily Convertible Preference Shares (CCPS): A type of preference share that must be converted into equity shares under specific conditions or at a predetermined time.
• Fully Diluted Shareholding: The total number of shares that would be outstanding if all outstanding options, warrants, and convertible securities were exercised or converted into common stock.
• Wholly Owned Subsidiary: A company controlled by a parent company that owns 100% of its shares.
• Fintech Ecosystem: The network of companies, technologies, and platforms involved in financial technology services.
• UPI Payments (Unified Payments Interface): An instant real-time payment system developed by the National Payments Corporation of India (NPCI) for inter-bank transactions.
• Consumer Credit Card Segment: The market for credit cards issued to individual consumers for personal use.
• Related-Party Transactions: Transactions between parties that have a close relationship, such as a parent company and its subsidiary, which require careful scrutiny.
• Regulatory Approvals: Permissions required from government bodies or regulatory authorities before a transaction or business activity can proceed.
• Share Purchase Agreement: A legal contract between a seller and buyer outlining the terms and conditions for the sale and purchase of company shares.