LKP Finance acquires strategic stake in Gyftr

New Delhi, Jan 7 (PTI) LKP Finance, a financial services company, on Wednesday announced acquisition of a strategic stake in Gyftr (Vouchagram), marking a transition from a traditional NBFC-led model to a platform-driven payments and rewards fintech ecosystem.

As part of the realignment, LKP Finance has submitted application to surrender its NBFC licence.

The transaction structure includes LKP Finance’s 22 per cent stake in Mufin Pay and Mufin Pay’s 100 per cent ownership of Gyftr, the company said in a release.

A licensing agreement for LKP Finance’s proposed name change to Gyftr is in process, aligning branding with the group’s payments and rewards platform strategy, it added.

"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 USD 40 billion ecosystem," said Kapil Garg, Promoter Managing Director, LKP Finance.

Arvind Prabhakar, CEO, Gyftr, said that by combining regulated payments capacity with Gyftr's giving and incentive scale, "we can position rewards as an essential component of regular financial and business processes rather than just a promotional tool".

The corporate gifting market, which is expected to be worth Rs 12,000-15,000 crore, is expanding at a strong rate of 18-20 per cent per year due to collaborations, staff engagement programs, customer loyalty programs, and sales incentives, the release said. PTI NKD NKD ANU ANU