Ezetap Thrives Post-Acquisition, Records 60% Growth in Annualized Recurring Revenue
FinTech BizNews Service
Mumbai, December 6, 2023: Razorpay, India's Leading Omnichannel Payments and Banking Platform for Businesses has reported a remarkable 60% growth in FY’23 for its POS Business after acquiring Ezetap (Razorpay POS) in 2022. In today's business landscape, a hybrid approach has become essential for connecting with customers. Simply providing both online and offline payment options is no longer sufficient; the key lies in seamlessly integrating the two for a comprehensive omnichannel experience. Razorpay's strategic alliance with Ezetap perfectly aligns with the company's mission to transform the omnichannel payment experience for its customers.
Following the acquisition, Razorpay POS witnessed a substantial 40% growth in its Total Payment Volume (TPV) from April to October 2023 compared to the corresponding period last year in 2022. Notably, 91% of the cumulative TPV for this timeframe was attributed to UPI transactions at doorstep, while SMS Pay contributed 9%. Another noteworthy trend was the impressive 21% increase in the conversion of cash on delivery to digital payments, surpassing the transaction volume recorded from April to October 2022. This signifies a significant shift in consumer behavior towards digital payment preferences over cash on delivery within the observed time frame.
Presently, Razorpay POS contributes nearly 10% of Razorpay’s overall revenue. The platform's overall growth has been propelled by various factors, including a noteworthy expansion of touchpoints by over 235,000 in the fiscal year 2023. Additionally, new and continued strategic partnerships with leading banks such as SBI, Yes Bank, IDFC, HDFC, and Axis have played a pivotal role in augmenting the platform's capabilities.
Commenting on this milestone, Arpit Chug, Chief Financial Officer, Razorpay said “Since the acquisition, Ezetap has experienced a remarkable transformation fueled by product innovation, revenue diversification, and strategic partnerships. We forged relevant partnerships with banks at critical junctures serving customers across 15,000+ pincodes in the country. All the while, our goal remains unchanged - to build for businesses and take care of all things payments for them while they do what they do best. We look forward to sustaining our growth in the ever-evolving fintech landscape.”
Razorpay’s acquisition of Ezetap in August 2022 enabled the brand to extend its mettle to the offline world and evolve into a one-stop platform for all money movement needs online and offline for businesses.
About Razorpay:
Razorpay, India’s leading omnichannel payments and banking platform helps Indian businesses with comprehensive and innovative solutions built over robust technology to address the entire length and breadth of the payment and banking journey for any business. Established in 2014, the company provides technology payment solutions to over 10 Mn businesses. Founded by alumni of IIT Roorkee, Shashank Kumar, and Harshil Mathur, Razorpay is the second Indian company to be a part of Silicon Valley’s largest tech accelerator, Y Combinator. Marquee investors such as Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Sequoia Capital India, Ribbit Capital, Matrix Partners, Salesforce Ventures, Y Combinator, and MasterCard have invested a total of $741.5 Mn through Series A to F in funding. A few angel investors have also invested in Razorpay’s mission to simplify payments and business banking and redefine how finance works in India.
