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LKP Finance Acquires Stake in Gyftr, Plans NBFC Exit

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  Published in Business and Finance on Wednesday, January 7th 2026 at 10:48 GMT by The New Indian Express

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LKP Finance Shifts Gears: Acquires Stake in Gyftr, Plans Exit from NBFC Model

LKP Finance, a non-banking financial company (NBFC), is undergoing a significant strategic shift. The company has announced the acquisition of a strategic stake in Gyftr, a digital gifting and rewards platform, while simultaneously announcing its intention to eventually exit the NBFC business. This move signals a diversification away from traditional lending towards the rapidly growing fintech and digital commerce space, reflecting a broader industry trend.

The Deal & Gyftr's Position

LKP Finance’s investment in Gyftr, while the exact amount remains undisclosed, is framed as a significant move to tap into the burgeoning digital gifting and loyalty market. Gyftr, founded in 2014, operates a platform enabling businesses to create, send, and manage digital gift cards, vouchers, and incentive programs. It caters to a diverse clientele, including leading brands across retail, e-commerce, FMCG, and BFSI sectors. Gyftr’s platform is particularly strong in enabling employee recognition and rewards programs, a sector seeing increasing investment from companies focused on talent retention.

According to Gyftr’s website, the platform processed over $500 million in gift card value in FY23 and boasts a network of over 3,000 brands. This established presence and consistent growth are key factors drawing LKP Finance into the venture. The investment will likely be used to fuel Gyftr's expansion plans, including technological upgrades, deeper market penetration, and potentially expansion into new geographies. LKP Finance sees considerable synergy between Gyftr's tech platform and its own financial capabilities, creating opportunities for innovation within the gifting and rewards space.

The NBFC Exit - A Proactive Strategy

The decision to gradually exit the NBFC model isn’t a reactive measure to regulatory tightening or market headwinds, but rather a proactive strategy stemming from LKP Finance’s assessment of long-term growth potential. For years, LKP Finance has been a player in areas like two-wheeler financing, personal loans, and business loans, particularly focused on providing credit to the underserved segments in Tier II and Tier III cities. However, the increasingly competitive NBFC landscape, coupled with rising compliance costs and a desire for higher margins, has led the company to explore alternative avenues.

The NBFC sector in India is currently undergoing significant scrutiny. The Reserve Bank of India (RBI) has been actively tightening regulations for NBFCs, focusing on asset quality, capital adequacy, and risk management. While LKP Finance maintains a healthy financial position, the company believes that navigating an increasingly regulated environment would require substantial ongoing investment.

Instead, LKP Finance anticipates a phased withdrawal from the NBFC business over the next 2-3 years. This will involve strategically reducing its loan portfolio and utilizing the proceeds to invest in growth sectors like fintech, as exemplified by the Gyftr deal. The company emphasized that this transition will be managed responsibly, ensuring minimal disruption to existing borrowers and maintaining its commitments. They plan to honor existing loan agreements and manage the runoff of the portfolio in a controlled manner.

Industry Implications & Future Outlook

LKP Finance’s move is part of a broader trend of NBFCs diversifying their business models. Many are either seeking to become full-fledged banks (although this path is becoming increasingly difficult due to RBI regulations), focusing on niche lending areas, or venturing into fintech solutions. This shift reflects the rapidly evolving financial landscape in India, driven by digitalization, increasing smartphone penetration, and the rise of alternative lending platforms.

The investment in Gyftr demonstrates a keen understanding of the growth potential of the digital rewards and gifting market, which is benefitting from changing consumer behavior and the increasing preference for digital transactions. The gifting market in India is substantial, and the digital gifting segment is growing at a particularly rapid pace, fueled by the convenience and personalization offered by platforms like Gyftr.

Looking ahead, LKP Finance intends to build a diversified portfolio of fintech investments. While Gyftr is the first significant move in this direction, the company is actively exploring other opportunities in areas such as payments, digital lending, and financial inclusion. The long-term goal is to transform LKP Finance from a traditional NBFC into a technology-driven financial services company, leveraging its financial expertise and capital to build a sustainable and scalable business in the digital era. The success of this transition will depend on LKP’s ability to effectively integrate Gyftr, identify and nurture other promising fintech ventures, and adapt to the dynamic demands of the Indian financial market.

Sources Used:

• [ https://www.newindianexpress.com/business/2026/Jan/07/lkp-finance-acquires-strategic-stake-in-gyftr-moves-to-exit-nbfc-model ]
• [ https://www.gyftr.com/ ] (Gyftr’s official website - used for details on their services and market position)