Zaggle acquires UnoBank stake to expand FinTech ecosystem

Zaggle Prepaid Ocean Services has agreed to acquire a 19.9% stake in digital banking platform UnoBank for $92.5 million, marking a strategic move to strengthen its FinTech ecosystem and expand its presence in embedded financial services.

Avinash Godkhindi, Managing Director and Chief Executive Officer of Zaggle, said the investment strengthens the company’s vision of creating a comprehensive FinTech ecosystem and broadening its range of digital financial services.

The investment is aimed at combining Zaggle’s spend management and corporate payments capabilities with UnoBank’s digital banking infrastructure to develop integrated financial solutions for businesses and consumers. The transaction is expected to create opportunities for cross-selling banking, payments and expense management services while supporting the companies’ long-term digital growth strategies.

Zaggle, which has provided spend management, prepaid cards and employee benefits solutions, said the investment aligns with its objective of building a broader financial services platform. By leveraging UnoBank’s banking capabilities, the company has planed to enhance its product portfolio and deliver a more seamless customer experience.

The partnership has also reflected the growing convergence of FinTech and digital banking, as providers increasingly combine payments, banking and software services into unified platforms. Embedded financial services continue to gain traction in India as businesses seek integrated solutions that improve operational efficiency and customer engagement.

The acquisition has remained subject to the completion of customary conditions and regulatory approvals.

The move comes as FinTech firms continue to invest in strategic partnerships and acquisitions to diversify revenue streams and strengthen digital capabilities. By combining expense management with banking infrastructure, Zaggle has aimed to position itself for future growth in India’s evolving financial services market while expanding the value proposition offered to enterprise customers and financial institution partners.