Razorpay, an Indian fintech firm has recently acquired Tera Finlabs which is a subsidiary of UK-based digital lender Gain Credit. The amount is not disclosed. Tera Finlabs provide technology-based solutions to digital lenders. Their services include risk management, customer onboarding, underwriting, and collections.
It is said that the acquisition by Razorpay follows the company’s plan to support micro, small and medium enterprises by giving out technology-based services. The company has also ensured that the acquisition will result in providing such services to more than 10,000 businesses in India by next year.
Razorpay CEO Harshil Mathur has pointed out the speculative nature of Indian banks when it comes to lending out to startups and micro, small and medium enterprises. This may be because of the risks associated with it. Razorpay Capital will solve the problems of cash flow and will allow the businesses to grow and flourish, he added.
Razorpay had earlier acquired Thirdwatch and Opfin. This is their third acquisition. The company has managed to amass US$40 million in total payments and shows a 40 to 45% month-on-month growth. It has provided financial help to many customers including Zomato, Swiggy, Ola, Facebook, and Airtel.