This marks the fintech unicorn's fifth acquisition in the past four years as it attempts to establish an omnichannel presence
Business-to-business (B2B) payment solution provider Razorpay has acquired an 80 per cent stake in Ezetap for approximately $150 million. The latter is a Bengaluru-based start-up that designs point-of-sale (POS) machines for small and medium businesses.
Harshil Mathur, CEO and Co-founder of Razorpay, stated that this acquisition would help the company build a full-stack omnichannel solution since Ezetap's POS enables businesses to accept payments in-store and on delivery. The latter serves banks like HDFC and Axis Bank and offline and online merchants, including Amazon and BigBasket, across 500,000 touchpoints. He added that it had achieved a $10 billion gross transaction value annual run rate.
"Thus far, our solutions have simplified online payment for businesses, striving to help entrepreneurs scale and grow in a digital world. By combining Ezetap's deep knowledge of the in-person payment space and our expertise in building for the online world, we will be able to create a transformative omnichannel solution for our businesses," Mathur claimed.
Abhijit Bose and Bhaktha Keshavachar founded Ezetap in 2011 to offer offline digital payment solutions to small shop owners. It launched its first device two years later for Rs 2,900, which consisted of a lightweight card reader. A retailer could plug it into any smart device or feature phone by a retailer, and customers could swipe their cards on the mobile to complete the transaction. Bose later joined WhatsApp as the company's head for Indian operations.
Ezetap is Razorpay's fifth acquisition in the past four years. In February 2022, it acquired Malaysian fintech start-up Curlec for over $19 million, marking its global foray.
The unicorn also acquired Pune-based IZealiant Technologies, a fintech start-up providing payments technology solutions for banks, in March 2022. Last year, it acquired TERA Finlabs an AI-based risk tech SaaS platform. In 2019, Razorpay bought payroll and HR management solution Opfin and fraud analytics AI-platform Thirdwatch in 2018.