Ezetap Mobile is in talks with Razorpay to buy the bulk of the company

• ByStartupStory     |    January 21, 2022

According to two persons familiar with the situation, Razorpay, a payments gateway provider for online transactions, is in early talks to buy a majority stake in mobile point-of-sale device vendor Ezetap Mobile Solutions Pvt. Ltd. However, the transaction’s financial specifics could not be determined right away.

Ezetap’s CEO, Byas Nambisan, said that his company is in talks with a number of investors, including global and local strategics, as well as renowned venture capital firms, to obtain $60 million (Rs 447 crore) in funding. He went on to say that Unitus Capital had been hired to scout for potential suitors, but he wouldn’t say who they were.

A representative with Razorpay also declined to comment on the situation.

After co-founders Abhijit Bose and Bhaktha Keshavachar left the company in 2018, Nambisan took over as CEO. Bose left to join WhatsApp, and Keshavachar went on to launch another deep technology firm.

The fintech startup, which founded in 2011, initially served large corporations and businesses by processing card payments on mobile phones, often known as mobile Point-Of-Sale (mPOS). Amazon, Bharti Airtel, Reliance, Indian Oil, Bigbasket, and Urban Ladder were among the approximately 300 large and small businesses that the company served at the time.

The company eventually switched to a bank partnership strategy. This helped the company turn around its fortunes, allowing it to raise $55-60 million in capital so far. According to the model, the business began approaching banks with a full suite of Android terminal-based products, including sector-specific payment solutions and value-added features like billing, fast EMIs via debit and credit cards, auto reconciliation, and analytics.

Axis Bank, HDFC Bank, and ICICI Bank are among the banks with which the firm is currently collaborating. It has also partnered with government entities such as the Chennai Municipal Corporation for tax collection, the Guwahati Municipal Corporation for citizen services, and the Bengaluru Traffic Police Department (e-challan app).

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