
To Tap into Offline Payments Razorpay had Purchased Ezetap for $150 Million
India's Razorpay has mentioned on Thursday that it had bought offline payments firm Ezetap, which marked the Sequoia Capital-backed firm's latest bet on the payments industry within a deal, one of the sources with knowledge of it has mentioned was worth of $150 million.
HIGHLIGHTS
- Razorpay offers payment gateway services for online merchants
- Shashank Kumar has stated Ezetap that it would help it to develop in this area
- Razorpay serves 8 million businesses and processed payments value $80 billion
Razorpay, that would be valued at over $7 billion and offers payment gateway services for online merchants has mentioned in a statement that the acquisition was its biggest till date.
It has mentioned that the deal would boost efforts to tap the offline market that would still accounts for a bulk of electronic payments in India. Ezetap was the one whose products which would include point-of-sale machines and processed over $10 billion in annual transactions in India.
Razorpay co-founder Shashank Kumar has stated Ezetap that it would help it to develop in this area. 'There was a large portion of offline payments and in-person payments that we do not cover.'
As per the source, Ezetap would still operate individually even after its acquisition, adding to it that the deal would involve a $150 million payment to Ezetap, with another possible $50 million connected to its performance over next year.
Therefore, Kumar has mentioned in an interview that the deal would facilitate Razorpay cross-sell its services, along with loan offerings, to offline businesses, adding to that Razorpay presently serves over 8 million businesses and processed payments value $80 billion since it was originated about eight years ago.
The acquisition would come as solution providers in India which had attempt to secure a good grip on both the online and offline payments.
India's Pine Labs, that has been focusing on offline payments for years, but it has started processing online transactions from last year itself, a business from which it has been targeting $4-5 billion in monthly transactions in last two years.
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