LKP Finance Ltd., a listed financial services company, has acquired a strategic stake in Gyftr (Vouchagram Private Limited), marking a pivotal step in its transition from a traditional NBFC-led model to a platform-driven payments and rewards fintech ecosystem.
As part of this strategic realignment, LKP Finance has submitted its application to surrender its NBFC license, emphasising its intention to shift toward scalable, transaction-led fintech businesses. The transaction structure includes LKP Finance’s 22% stake in Mufin Pay and Mufin Pay’s 100% ownership of Gyftr, enabling deeper operational integration. A licensing agreement for LKP Finance’s proposed name change to Gyftr is currently in process, aligning branding with the group’s payments and rewards platform strategy.
The transaction is part of a broader strategic relationship with LKP Finance, which holds a significant stake in Mufin Pay, reinforcing the financial and governance backing behind the combined platform. Leveraging Gyftr’s strong leadership in digital gifting, incentives, and rewards, along with Mufin Pay’s PPI (Prepaid Payment Instrument) licence-led payments infrastructure, the two platforms will offer integrated solutions across payments, rewards, and merchant engagement. Mufin Pay and Vouchagram Private Limited (Gyftr) will consolidate as a result of the investment, creating a unified payments and digital rewards platform.
The gifting industry in India has quickly grown into a sizable, well-organised, and increasingly digital economy. Due to growing digital usage, enterprise-led incentives, and changing consumer buying patterns, the industry, which is now estimated to be worth between $35 and $40 billion, is expected to surpass $65 billion by 2030. With over 150 million e-gift cards issued in the last year alone, digital gifting has become a major growth driver, indicating high demand across retail, financial, and business use cases.
Speaking on the transaction, Arvind Prabhakar, CEO, Gyftr, said, “This strategic investment by LKP Finance is a strong validation of Gyftr’s long term vision of building category: defining digital rewards infrastructure. 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. Our progress toward establishing a complete payments and incentives platform is greatly accelerated by this relationship.”
Adding to this, Kapil Garg, Promoter Managing Director, LKP Finance, stated, “Gyftr’s integration with LKP Finance creates a powerful synergy promoting high-frequency digital reward use cases and regulated payment rails. 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.”
The corporate gifting market, which is expected to be worth ₹12,000-15,000 crore, is expanding at a strong rate of 18-20% per year due to collaborations, staff engagement programs, customer loyalty programs, and sales incentives. Gifting is evolving from a seasonal activity to a strategic engagement and payments linked tool across industries as organisations move more toward digital, trackable, and compliant reward options.
By bringing together big business rewards and consumer rewards with a regulated payment system, this partnership aims to create a complete fintech platform that will make the company a key player in India’s fast changing payments and rewards market. Gyftr’s digital gift cards and incentive systems will be able to develop into spendable, programmable value instruments via Mufin Pay, which will act as the platform’s licensed payments backbone. It is anticipated that the connection will open up new use cases in embedded banking services, employee benefits, consumer loyalty, and enterprise incentives.
