India’s fastest-growing UPI-based payments platform has acquired a leading checkout financing provider to strengthen its credit offerings. The deal, finalized on February 26, 2025, aims to expand Buy Now Pay Later (BNPL) solutions, catering to the rising demand for credit in e-commerce and D2C brands. With this acquisition, the fintech giant will enhance credit-on-UPI services, integrate the acquired company’s core team, and scale its digital lending products. The move aligns with the company’s broader strategy to dominate India’s digital finance space by introducing credit cards and personal loans in the near future.
India’s fastest-growing UPI-based payments platform, known for revolutionizing digital transactions, has announced the acquisition of a leading checkout financing provider to strengthen its credit services. The deal, finalized on February 26, 2025, marks a strategic move to enhance Buy Now Pay Later (BNPL) solutions, catering to the evolving needs of e-commerce and direct-to-consumer (D2C) brands across the country.
This acquisition enables the payments giant to offer seamless credit-on-UPI solutions, making digital transactions more accessible to millions of users. The core team of the checkout financing provider will integrate with the UPI firm to scale credit products, ensuring a smooth transition.
“We see credit-on-UPI as a transformative tool for financial access in India. By leveraging this innovative checkout financing platform, we aim to develop unique products that empower millions to transact effortlessly,” said the CEO of the acquiring company.
Founded in 2019, the checkout financing firm has built strong partnerships with over 200 brands, collaborating with multiple banking institutions to offer instant credit solutions at checkout. The firm has previously raised $4.74 million from prominent global investors, underscoring its strong growth trajectory in the digital lending space.
The UPI platform, launched in July 2024, has rapidly ascended to become the sixth-largest payments player in India, surpassing key industry competitors. In January 2025, the firm reported a 24% month-on-month growth, processing approximately 125 million transactions, as per data from the National Payments Corporation of India (NPCI).
Beyond payments, the fintech giant has diversified its portfolio, launching fixed deposits in November 2024 through partnerships with multiple small finance banks. With the latest acquisition, the company aims to roll out credit cards and personal loans in the coming months, positioning itself as a dominant player in India’s digital finance ecosystem.
“Starting as college entrepreneurs, we provided credit to hundreds of thousands of users profitably without documentation or credit scores. With this acquisition, we are set to scale new heights in digital lending,” said the founder of the acquired firm.
India’s fintech landscape is witnessing a rapid transformation, with the government promoting digital payments and financial inclusion. With this landmark acquisition, the UPI payments leader is set to redefine the BNPL segment, reinforcing its commitment to expanding credit accessibility, enhancing user experience, and driving financial empowerment across India.
