The financial details of the deal were not disclosed
Razorpay said that the acquisition will allow it to strengthen its banking solutions arm
Apart from IZealiant, Razorpay has also acquired Curlec, TERA Finlabs, Opfin, and Thirdwatch
Fintech unicorn Razorpay has acquired IZealiant Technologies, a fintech startup, marking its fifth acquisition in four years. However, the financial details of the deal were not disclosed by the unicorn.
Founded in 2015, Pune-based IZealiant offers payment processing solutions to various banks and financial institutions.
In the last seven years, the fintech startup has deployed its ZealPro product suite across 50 banks in 18 countries in Asia and Africa. Consisting of five payments solutions, ZealPro allows banks and merchants to design their payment offerings for their consumers according to the applications they are aiming for.
Razorpay said that the acquisition will allow it to strengthen its banking solutions arm, and build banking technologies for partner banks.
Post the completion of the acquisition, the IZealiant team will join the Razorpay team, with the latter establishing an office in Pune.
Founded by Shashank Kumar and Harshil Mathur in 2014 as a payment gateway platform, Razorpay now offers SME payroll management, banking, lending, payments, and meets insurance needs among others.
The startup claims to enable digital payments for more than 200K small and large businesses, including Airtel, BookMyShow, IRCTC, Aditya Birla Capital, NSE, Swiggy among others.
For small businesses, the startup recently launched real-time financial solutions FTX’21: MAGIC Checkout, RazorpayX Tax Payment Suite and Razorpay RIZE. The unicorn has also introduced the Razorpay TokenHQ, a card tokenisation solution, and MandateHQ, a recurring payments interface for banks.
Commenting on the acquisition, Harshil Mathur, CEO & cofounder of Razorpay said, “I am confident that strong forces of two technology companies coming together like this will empower our partner banks with the necessary support in building next-gen solutions and changing market dynamics in the new normal.”
Prashant Mengawade, CEO, IZealiant said, “With Razorpay’s market-defining innovation and leadership in technical expertise, I’m confident that our combined forces will be a game-changer for pioneering modern payments solutions for banks.”
Razorpay Bats For Consolidation
Earlier this year, Razorpay acquired Malaysia-based fintech firm Curlec. This was Razorpay’s first foreign acquisition, and the deal was close to $19 Mn to $20 Mn. The deal was in line with Razorpay’s expansion plans to foray into Southeast Asia.
Razorpay also acquired TERA Finlabs, an AI-based risk tech SaaS Platform, for an undisclosed amount, in 2021.
Along with that, Opfin also joined the Razorpay portfolio, a Payroll & HR management solution, giving rise to RazorpayX Payroll. Opfin was the fintech unicorn’s second acquisition.
The first acquisition that Razorpay ever made was Thirdwatch, a fraud analytics AI platform, in 2018. Thirdwatch has built an AI platform to prevent real-time fraud in ecommerce companies.
Razorpay, the highest valued fintech startup in India, has turned profitable in FY2021, with a net profit of INR 7 Cr on a standalone basis.
The Bengaluru-based fintech startup saw revenue from sales reach INR 841.2 Cr in FY21, an incline of 65.2% from the INR 508.9 Cr it reported in the last fiscal. Overall revenue for the year was INR 844 Cr, a 160% incline from INR 519.4 Cr in FY20.
In December 2021, Razorpay raised $375 Mn in a Series F round, raising the startup’s valuation to $7.5 Bn, up from $3 Bn in April 2021. This also makes the fastest valuation hike for an Indian unicorn in a year.