In a media briefing, LKP Finance’s Kapil Garg and Gyftr CEO Arvind Prabhakar pointed to markets valuing lending companies and new-age fintech firms differently and affirmed this as a key reason for the strategic transaction.BSE-listed LKP Finance has acquired a strategic stake in Gyftr as it aims to move away from lending and build a platform-driven payments and rewards fintech ecosystem.
The structuring of the deal is such that LKP now holds a 22 per cent stake in Mufin Pay, which owns Gyftr in its entirety. LKP Finance’s proposed name change to Gyftr is currently in process.
Founded in 2012, Gyftr has long operated as a digital gifting and e-voucher platform for several major banks, multinational corporations as well as major domestic companies.
LKP has submitted an application to surrender its non-banking financial company (NBFC) license already, the company said in a statement on Wednesday.
Mufin Pay’s existing Prepaid Payment Instrument (PPI) license, will allow the combined company to expand offerings and create an end-to-end platform for all things digital gifting.
“We are well positioned to establish a scalable, compliant financial platform that benefits both businesses and consumers. With this framework, we can boost engagement, open up new revenue streams, and build long-term value throughout the $40 billion ecosystem,” said Kapil Garg, promoter managing director, LKP Finance.
In a media briefing, Garg and Gyftr CEO Arvind Prabhakar pointed to markets valuing lending companies and new-age fintech firms differently and affirmed this as a key reason for the strategic transaction.
Hindon Mercantile Limited, which houses all of these businesses, will have two businesses after the restructuring: Gyftr Limited for financial services and Mufin Green Finance Limited for lending.
LKP Finance expects the new platform to open up new use cases in embedded banking services, employee benefits, consumer loyalty, and enterprise incentives.
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