NewDelhi: Startups are buzzing with excitement in India especially in the tech space. Just a few days back we have witnessed an unprecedented euphoria about India’s first tech startup Zomato’s IPO, which was lapped up by the investors within hours of its opening.
Razorpay is another exciting startup in the fintech space, which has acquired its third company in a span of just three years and it too follows its foray into tech startup IPO.
Fintech firm Razorpay has acquired another firm based in Bangalore from the same space TERA Finlabs, which provides the tech, risk, and capital solutions to MSME & businesses, for an undisclosed amount.
TERA Finlabs is the subsidiary of UK digital lender GAIN Credit. Razorpay in its release said that it had acquired TERA Finlabs which do fall in line with its strategy of financially supporting businesses and MSMEs by building competencies in credit underwriting, capital solutions, and data-driven risk.
TERA Finlabs being the third acquisition of RazorPay in just three years and follows its foray into the B2B and SME lending with the launch of Razorpay Capital in the year 2019. Razorpay Capital offers business loans and instant settlements to meet the liquidity and cash crunch of SMEs.
In the year 2018, Razorpay acquired an (Artificial Intelligence (AI)-driven company Thirdwatch that reduces Return-to-Origin (RTO) fraud losses in e-commerce) in 2018, and in the same year of 2018, it also acquires Opfin (a payroll management software company). Razorpay since its start has reported a 40-45% mom growth.
The company has till now achieved $40 Bn TPV (Total Payment Volume) and aims to further consolidate its position as one of India’s largest and full-stack fintech companies. Razorpay is currently powering payments for over eight million businesses across the globe including the likes of Facebook, Ola, Zomato, Airtel, Swiggy, Cred, and ICICI Prudential among other leading organizations, and is all set to attain a customer base of 200 million by 2021.
Harshil Mathur, CEO & co-founder of Razorpay, said Indian banks are reluctant in providing business loans to startups & small businesses. Razorpay steps in there to solve these cash flow challenges of MSME. “TERA FinLabs team commands exceptional domain knowledge in credit underwriting with risk management and we see great value in TERA Finlabs.”
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