Tiger World-backed fintech unicorn Razorpay has agreed to purchase a controlling stake in cost options startup Ezetap Cellular Options for $126 million ( ₹1,000 crore) in a cash-and-stock deal, two people aware of the deal stated.
The transaction will comprise $100 million in money and the remainder as fairness, one of many two individuals cited above stated, requesting anonymity. The transaction is more likely to shut inside a couple of days, the second particular person added.
Razorpay and Ezetap didn’t reply to emailed queries until press time.
VCCircle was the primary to report concerning the deal in January this yr.
Earlier on Tuesday, information web site Entrackr wrote concerning the growth citing regulatory filings by Ezetap’s holding firm in Singapore.
Razorpay competes with startups resembling Paytm, Innoviti Fee Options and Pine Labs in India’s cost options business.
Razorpay, which can also be backed by Sequoia Capital India and MasterCard amongst others, has struck a couple of acquisitions of late. This February, it took a majority stake in Malaysian fintech agency Curlec, marking its first worldwide acquisition.
In 2020, Razorpay purchased Tera Finlabs, a man-made intelligence (AI)-based danger tech SaaS (software-as-a-service) platform. It additionally acquired Opfin, a payroll and HR administration resolution in 2019. In 2018, Razorpay marked its first acquisition with Thirdwatch, a fraud analytics AI-platform.
Byas Nambisan, Ezetap’s chief govt, has beforehand stated that his firm is in talks with a number of buyers, principally world and native strategic companies, apart from outstanding enterprise capital funds to boost round ₹450 crore in funding. The corporate has raised $55-60 million in funding until date. Nambisan took cost of Ezetap in 2019 after co-founders Abhijit Bose and Bhaktha Keshavachar left to affix WhatsApp and to start out a brand new enterprise in deep expertise respectively.
Bengaluru-based Ezetap, which started operations in 2011, had initially began within the fintech area by processing card funds on cell phones, often known as cell point-of-sale (mPOS), for giant enterprises and companies. It was then catering to over 300 huge and small companies together with Amazon, Airtel, Reliance, Indian Oil Company, Bigbasket and City Ladder.
The corporate later pivoted to a financial institution partnership mannequin, which led to a turnaround in its fortunes. Below the mannequin, Ezetap started approaching banks with a full suite of options on an Android terminal, together with sector-specific cost options and value-added options like billing, on the spot EMIs through debit and bank cards, auto reconciliation and analytics. It’s now working with Axis Financial institution, HDFC Financial institution, and ICICI Financial institution amongst banks. It has additionally tied up with authorities establishments such because the municipal company of Chennai for tax assortment, Guwahati Municipal Company to offer citizen companies, and Bengaluru Visitors Police (E-challan App).
The corporate claims to have processed $8 billion in annualized gross transaction worth (GTV) by way of 400,000 retail factors until date, and goals to hit ₹7,500 crore in annual income by 2024.
Arrange in 2014, Razorpay Software program, a unit of Razorpay Inc., is a full-stack monetary companies agency providing expertise cost options to over 8 million companies. Based by IIT Roorkee alumni, Shashank Kumar and Harshil Mathur, Razorpay is the second Indian startup to be part of Silicon Valley’s largest tech accelerator, Y Combinator.
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Supply: Live Mint