The acquisition will give exit to the latter’s investors American Express and ICICI Investments Strategic Fund.
Financial services provider BharatPe has acquired multi-brand loyalty platform PAYBACK India from American Express and ICICI Investments Strategic Fund, the company said on June 10.
While the company did not comment on the deal size, it is expected to be in the range of $28-30 million, according to people privy to the development.
The acquisition will give exit to the latter’s investors American Express and ICICI Investments Strategic Fund, which hold 89 percent and 11 percent stake in the company, respectively.
This is the first-ever acquisition by BharatPe and will make PAYBACK India, with over 100 million members, a wholly-owned subsidiary of BharatPe.
With PAYBACK India, BharatPe will be able to build a lucrative set of offerings for end customers that will enhance footfalls at merchants and accelerate the growth of their businesses.
As a result of the acquisition, all PAYBACK India employees will become part of the BharatPe group. Suhail Sameer and Gautam Kaushik, Group Presidents, BharatPe along with Sumeet Singh, General Counsel, BharatPe, have joined the board of PAYBACK India.
The role of the senior leadership team at PAYBACK India will be expanded to also work on the loyalty program for the 6 million plus merchants of BharatPe.
The team, led by Pramod Mahanta and Rijish Raghavan, will be working closely with Gautam Kaushik in the financial services and loyalty industry in India.
PAYBACK India will continue operating under its current name and there will be no impact on the existing customer and partner relationships.
“Our products have always been designed to empower the businesses of millions of small merchants and kirana store owners in India. With the acquisition of PAYBACK India, we will be able to add a whole new dimension to our merchant value proposition,” said Ashneer Grover, Co-Founder and CEO – BharatPe.
“In addition to the range of payment and credit products which BharatPe offers to help merchants scale their business, we will also be able to drive more consumers to their stores. We are committed to build India’s largest and most engaged merchant network and this acquisition will be a game-changer in that regard,” he added.
PAYBACK India was launched in 2010. It allows its customers to earn and redeem points on every transaction at its partner merchant outlets.