The Bangalore-based full-stack financial solutions company, Razorpay Software Private Limited, has bought the Bangalore-based smart payment solution company, Ezetap Mobile Solutions Pvt Ltd, in a cash and equity deal, launching it into the offline payments market.
According to certain sources, Razorpay has paid 150 Million US Dollars for the transaction, and out of that about 100 Million US Dollars will go to the shareholders of Ezetap in cash distributions. Furthermore, a few investors of Ezetap, such as California-based Venture Capital (VC) firm, Social Capital, and early stage venture fund, Prime Venture Partners, will also receive Razorpay shares as part of the agreement.Â
Razorpay may make an additional investment of around 50 Million US Dollars in the offline payments firm post the acquisition in order to expand the offline business. Through the integration of its online and physical payment options, the acquisition will enable Razorpay to provide an omnichannel payment platform.The Ezetap team will work alongside Razorpay to run its offline payments division.
According to Shashank Kumar, who is the co-founder and Managing Director (MD) of Razorpay, with the instant real-time payment system, the Unified Payments Interface (UPI), they have evidence that the payment market will become much more of a multichannel approach, or Omnichannel. Therefore, after spending a long time online, offline has been a significant part of the company’s strategy. The alliance will enable them to provide a better experience by bringing all payment flows, both online as well as offline, under a single roof.
The Managing Director further stated that Razorpay will be able to issue more credit and produce greater financial products and services at the time of managing end-to-end money flows thanks to the accessibility to Ezetap’s offline stack. This will give it a more improved understanding of the transactions recorded by offline businesses.
According to Harshil Mathur, who is the co-founder and Chief Executive Officer (CEO) of Razorpay, the company is currently investigating more connections related to Near Field Communication (NFC) payments. In the upcoming future, they plan to develop reward initiatives for their merchant partners. Both, their payments business and Ezetap’s operational break-even point have been reached, which has led Razorpay to pick Ezetap among others.
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