Startup acquisition seems to be a great trend for many big companies. The companies or the startups that have made it big likes to indulge themselves in the game of acquisitions.
So, when a small startup is doing well in the market but does not have the capability to sustain that, bigger companies tend to take control of it. However, this does not mean that the big companies intend to turn them into successful businesses.
Razorpay is one of the startups that has made a huge success and now has jumped into this field of acquisitions. Over the years, it has acquired startups like TERA Finlabs, Opfin, and more.
It is India’s top and leading company founded in 2014 by Shashank Kumar. Along with him, Harshil Mathur is the co-founder. The company is based in Bengaluru, Karnataka.
In simple terms, it is an online payment system or mode. Razorpay offers solutions for combined payments in one place. It enables businesses to obtain, process, and also distribute payments with its product array.
It allows you to use any payment mode. This includes debit and credit cards, UPI, mobile wallets (Mobikwik, JioMoney, etc.) multi-currency, and more. It helps businesses and traders to automate bank transfers, bills, checks, salaries, etc.
It is a digital system of payments that acts as a link between many apps. The decreasing role of debit and credit cards has given rise to the idea of auto-payments. In this regard, Razorpay offers features like UPI autopay.
It has administrative features like reporting, payout time, and dispute resolution. Security features like two-factor authentication, fraud protection tools, and more.
Along with these, other features include E-commerce integration, application programming interface, accounting software integration, etc.
List of Startups Acquired by Razorpay
Startup Acquisition is a process where bigger companies buy an entire small startup or take the maximum authority over it by buying most of its shares or equity. This usually happens, when large companies want to remove their competition in the market.
Also, many startups begin their businesses with the hope of ultimately selling them in the future. This is because, after a point of time, the growth of certain startups becomes stagnant. So, going under the shelter of big companies help them to stay afloat and get better exposure.
Razorpay is one of the most noted companies in India. This payment platform made online transactions super easy and efficient. Its efficiency, great strategies, and right funding at right time made it a Unicorn startup in 2020.
Over the years of its existence, it has made a total of five acquisitions. It has also made investments in NextPay, Shiprocket, and MSMEx.
The following is the list of startups acquired by Razorpay:
Acquired: March 2022
This is the most recent acquisition made by Razorpay. It is a Pune-based fin-tech startup founded in the year 2015 by Prashant Mengawade. It provides for payment transaction processing by banks, traders, and processors.
The startup provides application programming interface empowered, cloud-ready, and mobile-first payment processing products. The businesses are able to receive, process, and distribute the payments smoothly with this startup.
It offers features like multi-factor authentication, 3D secure 2.0, E-commerce acquiring, Mobile POS and Micro ATM, and more.
Razorpay announced the acquisition of the startup on the 16th of March, 2022 for an undisclosed amount.
Acquired: February 2022
It is a Malaysian direct debit payment startup founded in the year 2018 by Zac Liew and Steve Kucia. The startup is designed to aid and ease the collection of recurring payments.
The startup tends to make settlements between customers, merchants, and their banks. It manages transactions and also collects cash receipts. It ensures all this by building technology on top of the payment framework.
It offers features like card payments, direct debit, payment collection, payouts, management of subscriptions, billing, and more.
Razorpay announced the acquisition of this startup on the 8th of February, 2022. It acquired the startup for an amount between 19 to 20 Million dollars.
Acquired: July 2021
It is a startup that offers businesses financing solutions. It was founded in the year 2017 by Pradeep Rathnam and Harshil Mathur. It is based in Bengaluru. It provides technology, risk, and capital solutions.
This risk technology startup offers digital lending solutions for the organizations of finance and customer technology companies.
It is known for its great specialty in digital lending. It specializes in data-driven risk management, credit underwriting, and capital solutions.
Razorpay announced the acquisition of the startup for an undisclosed amount on the 19thof July 2021.
Acquired: November 2019
It is a payroll management startup founded in the year 2017 by Anuj Jain. It is based in Gurugram. This enables the customers to custom-make their payment workflow to be as hands-off or hands-on as they want.
The startup is super helpful for small businesses. Its interface is perceptive and simple to use. This discards irrelevant jargon and unwanted steps.
It offers a wide variety of features like compliance management, attendance management, approval process control, application programming interface, attendance tracking, and more.
Razorpay announced its acquisition of it on the 23rd of November, 2019 without disclosing the amount.
It is a fraud detection startup founded in the year 2016 by Shashank Kumar. The startup rules out scams and frauds in digital, e-commerce, and banking transactions by using Artificial Intelligence. It is based in Gurugram.
The startup provides automatic detection and prevention solutions by using AI, big data technology, location profile, and device fingerprinting.
It offers features like risky order profiling, verification of shipping addresses, model customization, intelligent automation, and more. This helps to cut fraud, keep the rate of interest in check, and improve success and profitability.
Razorpay declared its acquisition of the startup on the 5thof August, 2019. This was the first acquisition made by Razorpay for an undisclosed amount.
Over its eight years of existence, Razorpay has surely made great progress and created a significant name for itself in the market. It has not only made itself successful but has also helped various other businesses by making their processes easy and efficient.
Since its birth, it has made a total of five acquisitions. All these startups have helped Razorpay to become even more skillful than it was on its own. These have strengthened the company more in the fields of banking services, neobanking, payout processing, e-commerce fraud detection, and more.
What are the startups acquired by Razorpay?
Razorpay has acquired 5 startups:
- IZealiant Technologies
- TERA Finlabs
Who is the founder of Razorpay?
Shashank Kumar and Harshil Mathur are the founders of Razorpay.
What is the valuation of Razorpay?
Razorpay has a valuation of $7.5 billion.
Is Razorpay a unicorn?
Razorpay got unicorn status in 2021.