India's Razorpay buys Ezetap to tap into offline payments




  • In US
  • 2022-08-18 01:35:35Z
  • By Reuters

By M. Sriram

MUMBAI (Reuters) - India's Razorpay said on Thursday it had bought offline payments firm Ezetap, marking the Sequoia Capital-backed firm's latest bet on the payments industry in a deal which a source with knowledge of said was worth $150 million.

Razorpay, which is valued at more than $7 billion and offers payment gateway services for online merchants, said in a statement that the acquisition was its biggest to date.

It said the deal would boost efforts to tap the offline market which still accounts for a bulk of electronic payments in India. Ezetap, whose products include point-of-sale machines, processes more than $10 billion in annual transactions in India.

Razorpay co-founder Shashank Kumar said Ezetap will help it develop in this area. "There is still a large portion of offline payments and in-person payments that we don't cover," he said.

The source said Ezetap will continue to operate independently after its acquisition, adding that the deal includes a $150 million payment to Ezetap, with another possible $50 million linked to its performance over the next year.

The deal will also help Razorpay cross-sell its services, including loan offerings, to offline businesses, Kumar said in an interview, adding that Razorpay currently serves more than 8 million businesses and processed payments worth $80 billion since its inception about eight years ago.

The acquisition comes as solution providers in India try to secure a tight grip on both online and offline payments.

India's Pine Labs, which for years focussed only on offline payments, last year started processing online transactions, a business from which it is targeting $4-5 billion in monthly transactions within two years, Reuters reported.

(Reporting by M. Sriram; Editing by Aditya Kalra and Alexander Smith)

COMMENTS

More Related News

Samsung to lure 175 million existing India customers with cashback card
Samsung to lure 175 million existing India customers with cashback card
  • US
  • 2022-09-26 10:25:02Z

Samsung Electronics is targeting repeat purchases from its 175 million customers in India through a new cashback credit card, a senior executive said, a move...

Apple Inc will manufacture iPhone 14 in India
Apple Inc will manufacture iPhone 14 in India
  • US
  • 2022-09-26 09:42:01Z

Apple Inc. will make its iPhone 14 in India, the company said on Monday, as manufacturers shift production from China amid geopolitical tensions and pandemic...

India heads for the annual festive season-without the spirit
India heads for the annual festive season-without the spirit

Indian consumers, tempered by inflation and wth their hopes dashed by an erratic monsoon, may not spend heavily this coming festive season.

Apple Begins Making iPhone 14 in India Weeks Ahead of Schedule
Apple Begins Making iPhone 14 in India Weeks Ahead of Schedule

(Bloomberg) -- Apple Inc. began making its new iPhone 14 in India sooner than anticipated, after a surprisingly smooth production rollout that slashed the...

Explainer-NavIC, India
Explainer-NavIC, India's home-grown alternative to the GPS navigation system

The Indian government is pushing smartphone makers to enable support for its NavIC navigation system in new devices sold in the country from next year, a...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US