“UPI account par 18 rupay prapt hue” or “Rs 18 has been deposited to your UPI account.” Just when it seemed like India’s digital payments journey had reached its peak, QR codes paired with soundboxes emerged, showing us that we have only begun.

The familiar chime of these soundboxes now unites millions of UPI users across the country. Together, soundboxes and QR codes offer seamless, real-time payment confirmations, which makes them indispensable resources for merchants.

Why QR-based soundboxes work in India

The adoption of QR codes is rapidly expanding over conventional Point of Sale (PoS) devices, not only in Tier I cities, but also in Tier II, Tier III, and rural areas. In fact, QR code deployment increased by 34% in FY24 to over 350 million. PWC attributes the shift to factors such as high rental costs, MDR (merchant discount rates), and the operational complexity of maintaining PoS machines.

The low cost of QR payment acceptance has also compounded challenges. Merchants may use QR codes from different providers. For merchant acquirers, this translates into higher incidence of churn and an escalation in the overall cost of acquisition, as they invest in both technology and on-the-ground sales efforts. 

Hence, QR paired with soundboxes present an opportunity to strengthen merchant loyalty in offline acquisition. Instead of standalone QRs, merchants increasingly prefer QR paired with Soundboxes, as instant and reliable payment confirmations are essential — particularly for those with high foot traffic. Consider a busy sweets shop in Delhi during the holiday season. Now, sellers don’t have to wait for confirmations of UPI payments, which might lead to delays. These devices simplify the process for both customers and merchants by providing real-time, audible payment confirmation. Additionally, it also provides an additional level of security by diminishing the possibility of non-payments and fraud at checkout.

The game changer in offline merchant acquisition

According to a recent Cognitive Market Research report, India’s merchant acquiring market reached $611.21 million in 2024 and projected to grow at a CAGR of 12% between 2024-2031, driven by regulatory support. Another report by Kearney highlights that retail digital payments is expected to double, from $3.6 trillion in FY24 to $7 trillion by FY30.

As this growth unfolds, the challenge for acquirers—both banks and merchant aggregators — will be how they capture this opportunity. Given the operationally intensive nature of the business scaling profitably is far from simple. For example, if an acquirer wants to offer Soundboxes to its merchants, they need a reliable device vendor, manage inventory, across remote merchant locations nationwide, partner with logistics providers for shipment, test every dispatched unit, and establish merchant support operations. Setting up this infrastructure could delay their go-to-market, increasing the risk of losing merchant-led businesses to competitors. The traditional ‘do-it- yourself’ model, where acquirers handle everything from merchant acquisition to backend operations, is increasingly unsustainable and non-core to a merchant acquirer’s business.

Offline Payments as a Service (PaaS) simplify payment operations for acquirers by handling the entire merchant and transaction lifecycle. This includes onboarding, device management, and transaction processing. By integrating business and tech operations with advanced payment software, PaaS solutions allow acquirers to focus on strategic growth rather than operational complexities.

Through a managed services model, acquirers can significantly reduce merchant acquisition costs by digitizing the onboarding process and streamlining due diligence. They also handle device logistics, including shipping, inventory, and support. For example, a merchant in a remote rural area needing assistance with a device like SoundBox receives instant support through the managed services provider, who ensures resolution within contracted service levels, supporting uninterrupted business for the merchant.

Additionally, a dedicated UPI Switch for merchant transactions can help acquirers process transaction volumes. A dedicated switch can reduce load on the UPI switch, ensuring smooth, efficient management of growing transaction volumes and delivering a seamless payment experience. PaaS also provides value added services such as recon /dispute and complaints management, helping acquires to promote stickiness among merchants.

Scan and pay

P2M (person-to-merchant) payments, which comprise 60% of UPI transactions, offer a substantial opportunity for expansion, particularly in non-metropolitan regions. This potential is aligned with the government’s and RBI’s commitment to promoting financial inclusion. 

From your neighbourhood vegetable vendor to the supermarket in your locality, we are seeing or rather hearing soundboxes buzzing everywhere. It’s an example of how offline merchants are keen to embrace digital solutions that simplify their transaction processes. The combination of QR codes and soundbox technology has emerged as a standout innovation in this space and PwC’s projects that 54 million such devices will be deployed by FY29.

As a new operating model, PaaS will help acquirers drive their go-to-market strategies and strengthening their market presence while reducing capital expenditure significantly. By streamlining operations and offering scalable solutions, PaaS not only supports business growth but also fosters a more inclusive financial ecosystem that benefits all stakeholders.

(Deepak Chand Thakur is the CEO & Co-founder of NPST)

Kolkata-based packaged snack company Haldiram Bhujiawala has raised Rs 235 crore through a private placement from Pantomath’s Bharat Value Fund (BVF) for a minority stake. 

The snacks maker, which retails under the ‘Prabhuji’ brand, registered a revenue of Rs 473 crore for FY23 while profits declined to Rs 1.7 crore for the year, according to data sourced from research platform Tracxn. 

The company was established in 1992 by Manish Agarwal and Prabhu Shankar Agarwal and retails Haldiram’s Prabhuji and internet-first brand, Prabhuji Online. It has a portfolio of over 100 SKUs, with strong recognition in the Eastern and North Eastern markets. It also operates quick service restaurants in West Bengal and other North Eastern states. 

“In the last 60+ years, we have cultivated a loyal customer base by offering delectable snacks and sweets. Our company has been a trendsetter, revolutionizing food habits and tastes of India,” said Manish Agarwal, Managing Director of Haldiram Bhujiawala in a statement.

He added, “Leveraging our industry insights alongside BVF’s support, we are strategically positioned to enhance shareholder value and drive growth. This partnership lays a solid foundation for generating long-term economic benefits, ensuring a prosperous future for all stakeholders.”

The snack maker competes in a market dominated by larger players like Nagpur-based Haldiram, Annapurna Snacks, and others. Haldiram Bhujiawala claims to have a distribution network of approximately 2000 distributors servicing over two lakh retailers across West Bengal, Bihar, Jharkhand, and North East India. It also operates 19 retail outlets and 60 franchise stores. 

The snacks market is estimated to be a Rs 42,600 crore market by FY24, with a CAGR (Compound Annual Growth Rate) of 11%, dominated by packaged snack makers, according to data shared in the statement.

“We are pleased to partner with Haldiram Bhujiawala Limited. With over six decades of market insight since its founding as a proprietorship in 1958, the company has a deep understanding of consumer behaviour and market trends,” said Madhu Lunawat, CIO of BHarat Value Fund. 

He added, “The new generation’s sharp focus on the modern brand, ‘Prabhuji,’ is particularly noteworthy. We are highly optimistic about the food, FMCG, and consumer goods sectors, and Haldiram is well-positioned to achieve substantial growth in the years ahead.”

This marks BVF’s sixth overall investment in the mid-market segment, backing profitable growth companies. It had also recently backed Millenium Babycares, maker of the flagship brand Bumtum.

Backpacker hostel brand The Hosteller has raised Rs 48 crore in a Series A funding round. V3 Ventures led the equity round, contributing Rs 32 crore, with Blacksoil providing an additional Rs 16 crore in venture debt.

Other key investors include Synergy Capital Partners, Unit e-Consulting, Real Time Angel Fund, and several high-profile investors like Harsh Shah from the Naman Group Family Office.

The investment will allow the company to strengthen its presence in cities like Rishikesh and Manali, while also expanding into new destinations across India.

“We aim to have 10,000 beds by March 2026 from the existing 2,500 beds. Backpacker hostels have become the go-to choice for GenZ and millennial travellers in the post-covid era. The fresh capital will not only accelerate our expansion but also help us acquire customers from the newer territories,” Pranav Dangi, Founder and CEO of The Hosteller, said in a statement.

“We noticed a change in the way GenZ travels–from saving up for 1 holiday a year to travelling every long weekend. And, The Hosteller fulfills this exact need. With a standardised, tech-first, budget-friendly option – the brand offers something truly unique to its customers. This makes us even more excited about the growth ahead. The Hosteller has demonstrated outstanding execution capabilities in the consumer and travel space,” Arjun Vaidya, Co-founder of V3 Ventures, said.

Hostel companies are significantly benefitting from the rise of digital nomadism, a trend that has reshaped the hospitality landscape. Digital nomadism refers to a lifestyle where individuals leverage technology to work remotely while traveling to various locations. This modern way of living allows people to combine work and travel, enabling them to explore new cultures and environments without being tied to a specific office or geographical location.

The Hosteller was founded by Pranav Dangi in 2014. It began with the vision of creating accessible and affordable backpacker hostels across India, aiming to cater to the needs of young travelers. Since its inception, The Hosteller has rapidly grown to become one of India’s largest self-operated backpacker hostel chain, with a presence in over 55 destinations across the country.