Fintech unicorn Razorpay said it reported a 60% growth in its POS Business in FY23 following the acquisition of Ezetap (Razorpay POS) in 2022.
In a statement, the unicorn said that Razorpay POS witnessed a 40% growth in its Total Payment Volume (TPV) from April to October 2023 compared to the corresponding period of the previous year. It claimed that 91% of the cumulative TPV during this period came from UPI transactions at the doorstep, while SMS pay contributed 9%.
Another noteworthy trend was the 21% increase in the conversion of cash on delivery to digital payments, surpassing the transaction volume recorded in the April-October period in 2022, said the company.
In August last year, Razorpay acquired a majority stake in Ezetap in a mix of cash and stock in a deal estimated at around $100 Mn-$120 Mn. The acquisition enabled the fintech major to extend its offerings to the offline world as well.
Razorpay POS’ product portfolio includes Android Smart POS, Android Smart Mini POS, and soundbox.
The company said that Razorpay POS currently accounts for 10% of Razorpay’s total revenue.
Arpit Chug, chief financial officer at Razorpay, said that since its 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,” said Chug. The company counts the likes of SBI Bank, Yes Bank, IDFC, HDFC Bank, and Axis Bank among its partners.
Razorpay POS also expanded its touchpoints by over 2,35,000 in FY23, which propelled this growth, the company claimed.
Founded by Shashank Kumar and Harshil Mathur in 2014 as a payment gateway platform, Razorpay now provides a range of services including SME payroll management, banking, lending, payments, and insurance, among others. The startup has raised $741.5 Mn so far in multiple rounds from marquee investors including GIC, Tiger Global, Peak XV, Ribbit Capital, Matrix Partners, Salesforce Ventures, Y Combinator, and MasterCard.
Razorpay reported a standalone operating revenue of INR 1,481 Cr in FY22, up 76% year-on-year (YoY), while its net profit increased 20% to INR 7.3 Cr.
A few months ago, Razorpay acquired Mumbai-based digital invoicing and customer engagement startup BillMe to further strengthen its omnichannel play.
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