Razorpay buys offline payments firm Ezetap in company’s biggest acquisition ever

Razorpay Buys Offline Payments Firm Ezetap in Company’s Biggest Acquisition Till Date

Razorpay on Thursday said it had bought offline payments firm Ezetap, marking the Sequoia Capital-backed firm’s latest bet on the payments industry, worth $150 million (about Rs 1,200 crore), a source with knowledge of the matter said. ) Was.

RazorPay, which is valued at over $7 billion (about Rs 5,600 crore) and provides payment gateway services for online merchants, said in a statement that the acquisition was the biggest ever.

It said the deal would spur efforts to tap the offline market, which still forms a major part of electronic payments in India. Ezetap, whose products include point-of-sale machines, processes over $10 billion (about Rs 79,800 crore) in annual transactions in India.

Shashank Kumar, co-founder of Razorpay said that EzTap will help it grow in this area. “There is still a large proportion of offline payments and personal payments that we do not cover,” he said.

The source said that Ezetap will continue to operate independently after its acquisition, adding that the deal includes a $150 million (about Rs 1,200) payment to Azetap, with another potentially linked to its performance in the next year. $50 million (approximately Rs 400). ,

The deal will help Razorpay sell its services, including offering loans, Kumar said in an interview, adding that Razorpay currently serves more than 8 million businesses and is worth $80 million. billion (approximately Rs 6,37,100 crore). ) since its inception nearly eight years ago.

The acquisition comes as part of the solution providers’ attempt to gain a firm grip on both online and offline payments in India.

India’s Pine Labs, which for years focused only on offline payments, began processing online transactions last year, a business of which it generates $4 billion (about Rs 31,900 crore) – $5 billion in monthly transactions. (about Rs 39,830 crore). two years, Reuters reported.

© Thomson Reuters 2022


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