Fintech unicorn Razorpay appears to be on an acquisition binge after buying PoS company Ezetap
- ByStartupStory | August 16, 2022
Razorpay seems to be on a buying spree. In a primary and secondary transaction, the business-focused payment gateway-aggregator and neo banking platform Razorpay acquired Ezetap, a supplier of digital payments solutions, making this the third acquisition agreement for Razorpay in 2022.
According to Ezetap’s holding company in Singapore’s regulatory filings, Razorpay has acquired the bulk of the business’s shares in Ezetap Mobile Solutions. As part of the purchase, which consists of a combination of primary and secondary deals, Razorpay will buy more than 80% of the Bengaluru-based company’s shares as part of the purchase.
The documents also show that Helion Ventures, an early backer of Ezetap, continues to have a small share in the business even after the transaction. In the following weeks, Razorpay will reportedly also buy Helion’s share, according to sources.
One of the individuals, who wished to remain anonymous since the specifics of the transaction had not yet been made public, stated that “the sale is a combination of cash and shares and is anticipated to be in the neighbourhood of $100-120 million.”
Ezetap, which has been active for ten years, has received about $50 million total, including a $16 million round in August 2017. It has been successful in raising money from current investors, such as Js Investments and Social Capital, during the past four years in tiny tranches.
Sources say that Ezetap’s fundraising attempts, which were mandated by Unitus Capital and aimed to generate about $60 million, were unsuccessful. According to the source previously cited, except for Pine Labs, the majority of pure-play point of sale (PoS) businesses are having difficulties.
In 2022, Razorpay acquired two companies in succession. It bought a controlling share in Kuala Lumpur-based Curlec in February, and a month later it paid an unknown sum to buy financial company IZealiant Technologies.
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