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Indianunicorn Razorpay has acquired payments platform Ezetap In $150-200 million.


BENGALURU: Indian fintech unicorn Razorpay has acquired payments platform Ezetap in a deal that values the latter at around $150-200 million. It is Razorpay's largest acquisition so far. It's largely a cash deal, with a small equity portion.

Founded in 2011 by Silicon Valley veterans Abhijit Bose, who is currently the head of WhatsApp India, and Bhaktha Keshavachar, Ezetap is an offline PoS (point of sale) company that has simplified the offline payments experience. Ezetap launched their first device in 2013 at under $50.
The company's solution today accepts all payment modes, be it cards, mobile wallets, biometric-based, QR code-based, or even payments via messaging apps. It supports all hardware devices.
Ezetap competes with companies like Pine Labs and Mswipe.
For Razorpay, which is a payment gateway and a neo-banking platform, Ezetap is attractive for its use in physical locations. Harshil Mathur, CEO and co-founder of Razorpay, said offline is a big component of the digital business.
"With the advent of UPI, the online and offline boundaries are blurring. Many businesses are also becoming omnichannel. For us to scale, it has become imperative to find a single platform to enable businesses across both value chains,” he said.
Razorpay will leverage Ezetap’s tech stack to create this single unified platform.
Ezetap's 300 employees will join Razorpay, but will operate as an independent business unit within the latter.
Ezetap had raised $51 million in funding from investors including Social Capital, Helion Advisors, American Express, JS Capital (Jonathan Soros) and Prime Venture Partners. The company serves over 500,000 touchpoints, and processes over $10 billion in annual transactions on its platform.
Mathur said that the acquisition expands Razorpay's footprint in the SMB and mid-market enterprises segment, besides becoming well-entrenched in the retail space by developing deeper relationships with merchants.
Razorpay powers payments for over 8 million businesses including the likes of Facebook, Ola, Zomato, Swiggy, Cred, Muthoot Finance, and Indian Oil, and is said to be on track to reach 10-12 million businesses by 2023. Razorpay said it achieved $80 billion in total payment volume (TPV) through its platform as of April.
Ezetap CEO Byas Nambisan said, “We share Razorpay’s vision of simplifying payments and banking for Indian businesses, being available wherever their customers are, and being a one-stop payment and banking platform across channels.”

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