Tiger Global-backed fintech unicorn Razorpay, on Tuesday announced the acquisition of payments-linked loyalty and engagement solutions provider PoshVine for an undisclosed amount, marking its fourth acquisition in 2022 and seventh overall.
With this deal, Razorpay Software Pvt. Ltd has entered into the loyalty and reward management segment. The entire PoshVine team will be joining Razorpay to build the infrastructure.
PoshVine offers payments-linked loyalty and engagement solutions to banks, payment networks and businesses.
It was founded in 2011 by Richik Nandi and Garima Satija as a restaurant booking platform, raising a seed investment from MyFirstCheque. Since 2016, the company has been offering its loyalty-as-a-service product to more than 20 banks and networks such as SBI Cards, HDFC Bank, IDFC FIRST Bank, AU Bank, DBS, Visa and American Express across India and Southeast Asia.
“Loyalty has been a core need of banks and merchants and our acquisition of PoshVine is a step towards enabling growth for our partner businesses. With an increasing percentage of customer spends moving online, there is an opportunity to help banks and merchants engage with their customers across the lifecycle using payment-linked loyalty including rewards," said Shashank Kumar, co-founder and managing director of Razorpay.
Razorpay was valued at more than $7.5 billion in its last funding round in December 2021, making it the most-valued private fintech company in India. The company is backed by investors including Tiger Global, Sequoia Capital India, GIC, Lone Pine Capital, Alkeon Capital and TCV.
The fintech platform has been on an acquisition spree. In an exclusive interaction with VCCircle, the company's chief executive Harshil Mathur said they will continue to make small acquisitions but large deals will be minimal at least for this financial year, as it stabilizes its purchase of Ezetap.
The fintech company made a foray into the offline payments market with the acquisition of Ezetap last month for $200 million, its biggest so far. Also, in March, the company acquired Pune-based IZealiant Technologies, which provides software products and services to banks and financial institutions to enable electronic payments.
In February, Razorpay acquired a majority stake in Malaysia-based fintech company Curlec to mark a foray into international operations. In the past, the company acquired Tera Finlabs in 2021 and Opfin in 2019.