Business-to-business (B2B) digital payments and neobanking platform Razorpay has acquired Bengaluru-based point-of-sale (PoS) machines provider Ezetap
Razorpay has made this foray into the offline market as competition has intensified in the offline payments space.
Razorpay has bought an 80% in Ezetap Solutions Pte Ltd, the Singapore-based parent entity of Ezetap Solutions Pvt Ltd, according to a regulatory filing with the city-state’s corporate affairs ministry.
The filing was sourced by Entrackr on August 16 and the news agency reported that the fintech major bought the stake for $100-$120 million, which will see it go up against Pine Labs, MSwipe, BharatPe and Infibeam Avenues, who dominate the offline payments space in the country.
As of June 2021, Ezetap was valued at a post-money valuation of $145 million, and so, for an 80% stake, Razorpay would likely have paid close to $120 million.
Ezetap caters to several large enterprises in India including BigBasket, Reliance, Indian Oil Corporation and Bharti Airtel.
The company, which has raised about $60 million to date, counts Helion Venture Partners, Social Capital and JS Capital as its backers.
Ezetap’s Singapore-based entity, which runs the India entity, reported revenue of $8.9 million for the year ended March 2020, according to data platform Tracxn.
The company reported a loss of $8.3 million for that year and hasn’t filed results for FY21 and FY22 (2021-22) yet.
