Razorpay, a payment gateway provider for online transactions, is in initial talks to acquire a majority stake in cellular point-of-sale machine supplier Ezetap Cell Options Pvt. Ltd, according to two people familiar with the situation. However, the financial details of the transaction could not be ascertained immediately.
Byas Nambisan, chief executive officer of Ezetap, confirmed his company is in talks with numerous buyers, primarily global and native strategics, as well as renowned enterprise capital funds, to raise approximately $60 million (447 crore) in funding. He also stated that Unitus Capital has been hired to scout for potential suitors, but he declined to reveal any specifics about any potential buyers.
The startup, founded in 2011, began in the fintech space by processing card payments on cell phones, also known as cellular Point-Of-Sale (mPOS), for large enterprises and businesses. At the time, the company served over 300 large and small businesses, including Amazon, Bharti Airtel, Reliance, Indian Oil, Bigbasket, and City Ladder.
Nonetheless, the company later shifted to a financial institution partnership model. This turned around the company’s fortunes, allowing it to raise $55-60 million in funding to this point. Under the model, the startup began approaching banks with a full suite of options on an Android terminal, including sector-specific cost options and value-added options like billing, prompt EMIs via debit and bank cards, auto reconciliation, and analytics.
Currently, the startup is collaborating with Axis Financial institution, HDFC Financial institution, and ICICI Financial institution. It has also partnered with government organisations, such as the Chennai Municipal Corporation for tax collection, the Guwahati Municipal Corporation for citizen services, and the Bengaluru Traffic Police (e-challan app).
The company stated it is working proactively to position itself as a retail-facing company and plans to expand its product offerings in the retail funds area by joining palms with kirana-tech gamers.
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