Fintech unicorn Razorpay said it has acquired fintech startup PoshVine. The acquisition marks Razorpya’s foray into loyalty and rewards management. The companies did not reveal the value of the transaction.
Founded in 2011, PoshVine offers payments-linked loyalty and engagement solutions to banks, payment networks, and 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,” said Shashank Kumar, managing director and co-founder of Razorpay.
The entire PoshVine team will be joining Razorpay with a vision to build the payment-linked loyalty infrastructure. In this era of evolving customer needs, banks and merchants are becoming key stakeholders in the payments ecosystem. With over 76.8 million credit card holders who spent about Rs 1.13 trillion through online and PoS (point of sale) payments, there is a growing market for banks and merchants to focus on creating unique personalized purchase experiences for end customers and increasing customers’ spends. One of the fastest-growing opportunities for achieving customer retention and customer lifetime value is through investment in rewards and loyalty management solutions.
PoshVine has been tapping this and the company witnessed a 3X growth in FY2022 alone. Since 2016, PoshVine has been offering its Loyalty-as-a-Service product to over 20 leading banks and networks such as SBI Card, HDFC Bank and IDFC FIRST Bank.
“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.
PoshVine marks Razorpay’s 7th acquisition. Prior to this, Razorpay recently acquired Ezetap, a firm that was founded with the aim to simplify the in-person offline payments experience in August 2022. Before that, the company acquired Pune-based fintech startup IZealiant Technologies, which provides payments technology solutions for banks. The other previous acquisitions include Malaysia-based fintech firm Curlec (a leading recurring revenue platform), TERA Finlabs, (AI-based risk tech SaaS platform), Opfin (payroll and HR management solution), and Thirdwatch (Fraud Analytics AI-platform).