Digital payments and financial services unicorn, Razorpay Software Pvt Ltd, on Wednesday said it has acquired payments solutions provider IZealiant Technologies for an undisclosed amount.
The acquisition will help Razorpay strengthen its banking solutions arm which builds payment banking technologies for its partner banks, the statement said.
Razorpay's Banking Solutions Arm has been collaborating with banks to develop new payment technology solutions for the past few years. Razorpay's banking team has worked on several projects, including Razorpay TokenHQ, a multi-network RBI compliant card tokenization solution, and MandateHQ, an API (application program interface) based, plug-and-play recurring payments interface for banks, it said.
Founded in 2015, IZealiant is a Pune-based startup that provides mobile-first, API-enabled, and cloud-ready payment processing products for banks and financial institutions. IZealiant has deployed its ZealPro product suite in over 50 banks in 18 countries in the last seven years, processing transactions in India, South Africa, Nepal, Bangladesh, Vietnam, Singapore, and Uganda, among others, the company stated.
The IZealiant team will continue to work out of Pune, and Razorpay will expand its personnel by opening an office in Pune.
This is Razorpay's fifth acquisition. Razorpay acquired Curlec in February. Previously it acquired TERA Finlabs, an artificial intelligence (AI)-based risk tech SaaS (software-as-a-service) platform. In 2019, the company bought Opfin, a payroll and HR administration system.
“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,” said Harshil Mathur, CEO and Co-founder of Razorpay.
“The team at IZealiant has extensive experience in developing and implementing complex, high-performance acquiring and issuing systems," he added.
VCCircle in January reported that the company is in early talks to pick up a majority stake in Bengaluru-based payment solutions provider, Ezetap Mobile Solutions Pvt Ltd.
In December, Razorpay raised $375 million as a part of its Series-F fundraise co-led by hedge and private equity firms Lone Pine Capital, Alkeon Capital and TCV, valuing the company at $7.5 billion, a seven-fold rise since the start of 2021, when the company was valued at a little over $1 billion.
Razorpay Software, the subsidiary of Razorpay Inc., has raised $741.5 million in the capital so far and was valued at $7.5 billion in December 2021. It is backed by the likes of Tiger Global, Sequoia Capital India, GIC, Lone Pine Capital, Alkeon Capital and TCV.