As competition intensifies in the offline payments space, fintech unicorn Razorpay has marked its third acquisition of the year by acquiring Bengaluru-based digital payment company Ezetap.
The regulatory filings of Ezetap’s Singapore-based holding company revealed that the fintech unicorn has held over 80 per cent stake in Ezetap. The acquisition was made in a mix of primary and secondary deals for an undisclosed amount.
Although reports stated that the deal is yet to be closed and the startup will soon disclose the information including the financials.
It was further reported that the transaction which is anticipated to be worth between $100 Mn to $120 Mn, is a mix of cash and stock. This acquisition marks digital payments provider Razorpay’s entry into the point-of-sale (POS) space.
Earlier in February, the fintech startup acquired a majority stake in Curlec, a Malaysia-based payments startup, for $20 Mn. Following this, Razorpay acquired digital payments startup IZealiant Technologies for an undisclosed amount.
Founded in 2011 by Byas Nambisan, Ezetap provides payment solutions to corporations, healthcare organisations, brick-and-mortar retailers, e-commerce firms, and financial inclusion organisations.
As of July 2022, Ezetap has deployed over 2,30,000 smart service points (PoS devices) on its platform. The company further claimed to have processed transactions worth over $2 Bn 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. Besides, the company is said to have a full stack capability to handle digital payment processing, right from switching to reconciliation.
PoS devices, contactless payments (UPI, QR code-based payments), BNPL services, currency conversion, and multi-bank acquiring are just a few of the services offered by Ezetap.
According to Ezetap’s website, some of the companies on its cap table include SocialCapital, Helion, American Express, Prime Venture Partners, JS Capital Management LLC, Horizon Ventures, and Berggruen Holdings. Moreover, the company has raised $51 Mn in funding from these investors.
Besides, the eight-year-old business-to-business (B2B) digital payments and neo banking platform Razorpay, is a payment aggregator that provides a range of financial services and products, including SME payroll management, banking, lending, payments, and insurance, among others.
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In addition to Airtel, BookMyShow, IRCTC, Aditya Birla Capital, NSE, and Swiggy, Razorpay claims to have served over 200K small and large businesses.
Razorpay acquired tech startup IZealiant technologies in March 2022, Malaysia-based fintech firm Curlec in February 2022, an AI-based risk tech SaaS Platform TERA Finlabs in 2021, Payroll & HR management solution Opfin in 2019, and Fraud Analytics AI-platform Thirdwatch in 2018.
Established in 2014, Razorpay provides technology payment solutions to over $8 Mn businesses. Razorpay has received $741.5 Mn 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.
