PremiumEzetap Mobile CEO Byas Nambisan confirmed that his company is in talks with many investors, mostly global and local strategics, besides prominent venture capital funds to raise around $60 million ( ₹447 crore) in funding
NEW DELHI : Razorpay, a payments gateway provider for online transactions, is in early talks to acquire a majority stake in mobile point-of-sale device provider Ezetap Mobile Solutions Pvt. Ltd, two people familiar with the development said. However, the financial details of the transaction could not be immediately ascertained.
Byas Nambisan, chief executive officer of Ezetap, confirmed his company is in talks with many investors, mostly global and local strategics, besides prominent venture capital funds to raise around $60 million ( ₹447 crore) in funding. He added that Unitus Capital has been hired to scout for potential suitors, but declined to disclose details of any potential investors.
A Razorpay spokesperson too declined to comment on the development.
Nambisan took charge of the company in 2018 after co-founders Abhijit Bose and Bhaktha Keshavachar exited the firm. Bose quit to join WhatsApp and Keshavachar moved on to float another venture in the deep technology space.
The startup, launched in 2011, initially operated in the fintech space by processing card payments on mobile phones, also known as mobile Point-Of-Sale (mPOS), for large enterprises and businesses. The company was then catering to over 300 big and small enterprises, including Amazon, Bharti Airtel, Reliance, Indian Oil, Bigbasket and Urban Ladder.
However, the company later pivoted to a bank partnership model. This turned around the company’s fortunes, allowing it to raise $55-60 million in funding to date. Under the model, the startup started approaching banks with a full suite of solutions on an Android terminal, including sector-specific payment solutions and value-added features such as billing, instant EMIs via debit and credit cards, auto reconciliation and analytics.
The startup is currently working with Axis Bank, HDFC Bank and ICICI Bank. It has also tied up with government institutions, including the municipal corporation of Chennai for tax collection, Guwahati municipal corporation to provide citizen services, and Bengaluru traffic police (e-challan app).
The company said it is working proactively to project itself as a retail-facing firm and plans to expand its product offerings in the retail payments space by joining hands with kirana-tech players.
Ezetap has also expanded overseas through bank partnerships. It first tasted success in the UAE by forging ties with Mashreq Bank. “The funding will also be utilized to implement expansion plans in MENA and Africa regions," Nambisan said.
