LKP Finance Transitions: Strategic Stake in Gyftr for Fintech Ecosystem Development

LKP Finance has acquired a strategic stake in Gyftr, transitioning from a traditional NBFC model to a fintech-driven platform focusing on payments and rewards. The company plans a name change to align with its new strategy, enhancing its presence in a USD 40 billion ecosystem.

LKP Finance, a prominent player in the financial services industry, announced on Wednesday its acquisition of a strategic stake in Gyftr, officially known as Vouchagram. This move signals a shift from its traditional non-banking financial company (NBFC) model to a platform-driven fintech ecosystem focused on payments and rewards.

The acquisition involves LKP Finance holding a 22% stake in Mufin Pay, which wholly owns Gyftr. As part of this realignment, LKP Finance has applied to surrender its NBFC license, seeking to transition its identity to align with its fintech ambitions through a proposed name change to Gyftr.

Kapil Garg, Promoter Managing Director of LKP Finance, highlighted the goal to create a scalable and compliant financial platform that leverages a USD 40 billion ecosystem. Arvind Prabhakar, CEO of Gyftr, emphasized integrating rewards into core financial and business operations. The corporate gifting market, key to this strategy, is rapidly expanding, projected to reach Rs 12,000-15,000 crore.

(With inputs from agencies.)