Merchant payments and financial services provider, BharatPe has acquired a multi-brand loyalty platform, PAYBACK India, to help its 6 million offline merchants roll out rewards and loyalty programmes for customers. The acquisition is expected to give an exit to American Express and ICICI Investments Strategic Fund, which hold 90% and 10% stake respectively in the entity.
PAYBACK India will continue to function independently, after the acquisition. The deal is expected to be worth $30 million, an individual aware of the discussions told Mint on condition of anonymity.
With this deal:
- BharatPe, which has traditionally been powering payments and providing credit and other financial services to offline merchants, enters a consumer-facing business.
- BharatPe will now also provide digital credit to customers and launch ‘Buy Now Pay Later’ (BNPL) services on the PAYBACK platform.
- PAYBACK India’s customers can also redeem their loyalty points and BNPL services at offline stores through the BharatPe quick response (QR) code.
Important takeaways for all competitive exams:
- Chief Executive Officer of BharatPe: Ashneer Grover;
- Headoffice of BharatPe: New Delhi;
- BharatPe Founded: 2018.