Razorpay to procure Majority Stake in Ezetap Mobile Solutions
Razorpay, a payments gateway provider for online transactions is to buy a majority stake in Ezetap Mobile Solutions Pvt. Ltd., a provider of mobile point-of-sale devices.
Ezetap's chief executive officer, Byas Nambisan, acknowledged that his company is in talks with a number of investors, including global and local strategics as well as renowned venture capital funds to obtain $60 million (about Rs 447 crore) in funding.
He also said that Unitus Capital had been hired to scout for potential suitors, but he wouldn't say who they were.
The Fintech startup, founded in 2011, initially served large corporations and businesses by processing card payments on mobile phones, often known as mobile Point-Of-Sale (mPOS).
“The funding will also be utilized to implement expansion plans in MENA and Africa regions”, says Nambisan
The company eventually switched to a bank partnership strategy which helped the company turn around its fortunes, allowing it to raise $55-60 million in capital so far. Axis Bank, HDFC Bank, and ICICI Bank are among the banks with which the startup is currently collaborating and 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).
The company stated that it is deliberately working to position itself as a retail-facing company having aspirations to grow its product offerings in the retail payments area by partnering with kirana-tech companies.
Through bank relationships, Ezetap has also expanded internationally. Its first taste of success came in the UAE, where it partnered with Mashreq Bank.
“The funding will also be utilized to implement expansion plans in MENA and Africa regions”, says Nambisan.