LKP Finance to Exit NBFC Business, Bets on Fintech With Gyftr Acquisition

Financial services company LKP Finance has acquired a strategic stake in Gyftr (Vouchagram), marking a significant shift in its business model from a traditional NBFC-led structure to a platform-driven payments and digital rewards fintech ecosystem.

As part of this strategic transition, LKP Finance has applied to surrender its NBFC licence, signalling its intent to focus on scalable, transaction-led fintech businesses rather than balance-sheet lending. The move aligns with the group’s broader effort to build an integrated payments and rewards platform.

The transaction structure involves LKP Finance holding a 22% stake in Mufin Pay, while Mufin Pay owns 100% of Gyftr, enabling tighter operational and strategic integration. A licensing agreement is also underway for LKP Finance’s proposed name change to Gyftr, aligning the group’s brand identity with its core payments and rewards strategy.

The deal follows Mufin Group’s acquisition of a majority stake in LKP Finance in April 2025, bringing together LKP’s capital base and legacy with Mufin’s expertise in lending, green finance and digital payments. Under the current transaction, Mufin Pay and Gyftr will consolidate, creating a unified platform that combines regulated payment infrastructure with digital gifting and incentives.

Commenting on the transaction, Arvind Prabhakar, CEO of Gyftr, said the investment validates the company’s long-term vision of building category-defining digital rewards infrastructure. “By combining regulated payments capacity with Gyftr’s scale in gifting and incentives, we can make rewards an integral part of everyday financial and business processes rather than a purely promotional tool,” Prabhakar added.

Point to note: Mufin Pay provides the payments backbone through RBI-approved prepaid payment instruments (PPI) wallets, prepaid cards and UPI, while Gyftr operates as a large-scale digital rewards and gift card platform. Together, the entities aim to offer end-to-end solutions for corporate gifting, customer engagement and loyalty programmes.

Kapil Garg, Promoter and Managing Director of LKP Finance, said the integration creates strong synergies around high-frequency digital rewards and compliant payment rails. “This framework positions us to build a scalable, regulated platform that enhances engagement, unlocks new revenue streams and creates long-term value across a $40 billion ecosystem,” he said.

Notably, India’s gifting industry has expanded into a large, organised and increasingly digital market. Valued at $35–40 billion currently, it is expected to exceed $65 billion by 2030, driven by enterprise incentives, rising digital adoption and changing consumer behaviour. In 2024 alone, over 150 million e-gift cards were issued, underscoring the rapid growth of digital gifting across retail, financial services and corporate use cases.

The corporate gifting market in India, estimated at ₹12,000–15,000 crore, is growing at 18–20% annually, driven by employee engagement, customer loyalty and sales incentive programmes. With gifting increasingly becoming a strategic, trackable and compliant engagement tool, the partnership aims to position the combined platform as a key player in India’s evolving payments and rewards landscape.