Fintech unicorn Razorpay continues acquisition spree, now buys Ezetap
As competition heats up in the offline payments space, fintech unicorn Razorpay has marked its third acquisition of the year by acquiring Bengaluru-based digital payments company Ezetap.
The regulatory filings from Ezetap’s Singapore-based holding company revealed that the fintech unicorn has held over 80 percent stake in Ezetap. The acquisition was made in a mix of primary and secondary deals for an undisclosed sum.
Although reports stated that the deal is not yet finalized and the startup will soon reveal the information, including financials.
It was further reported that the transaction, which is expected to be worth between $100 Mn to $120 Mn, is a mix of cash and stock. This acquisition marks digital payment provider Razorpay’s entry into the point of sale (POS).
Earlier in February, the fintech startup bought a majority stake in Curlec, a Malaysia-based payments startup, for $20 million. After this, Razorpay acquired digital payments startup IZealiant Technologies for an undisclosed amount.
Founded in 2011 by Byas Nambisan, Ezetap offers payment solutions to companies, healthcare organizations, brick-and-mortar retailers, e-commerce firms and financial inclusion organizations.
As of July 2022, Ezetap has deployed over 2,30,000 smart points of service (PoS devices) on its platform. The company further claimed to have processed over $2 billion worth of transactions annually.
Furthermore, the company’s PoS devices enable businesses to accept any payment through any type of digital instrument (cards, wallets, apps) through a single interface. In addition, the company is said to have full stack capacity to handle digital payment processing, right from exchange to reconciliation.
PoS devices, contactless payments (UPI, QR code based payments), BNPL services, currency conversion and multi-bank purchases are just some of the services offered by Ezetap.
According to Ezetap’s website, some of the companies on the cap table include SocialCapital, Helion, American Express, Prime Venture Partners, JS Capital Management LLC, Horizon Ventures and Berggruen Holdings. In addition, the company has raised $51 million in funding from these investors.
Additionally, eight-year-old business-to-business (B2B) digital payment and new banking platform Razorpay is a payment aggregator that offers a range of financial services and products, including SME payroll, banking, lending, payments and insurance, among others.
Read also | Razorpay gets payment aggregator license from RBI
In addition to Airtel, BookMyShow, IRCTC, Aditya Birla Capital, NSE and Swiggy, Razorpay claims to have served over 200,000 small and large businesses.
Razorpay acquired tech startup IZealiant Technologies in March 2022, Malaysia-based fintech firm Curlec in February 2022, AI-based venture technology SaaS platform TERA Finlabs in 2021, Payroll and HR management solution Opfin in 2019 and Third Analytics AI platform 2018.
Razorpay was established in 2014 and supplies technological payment solutions to companies with over 8 million dollars. Razorpay has received $741.5 million in funding from renowned investors including Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Sequoia Capital India, Ribbit Capital, Matrix Partners, Salesforce Ventures, Y Combinator and MasterCard.
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