Razorpay’s Point of Sale (POS) business, a significant contributor to the fintech company’s total revenue, has experienced a remarkable 60% growth following its acquisition of Ezetap. The POS segment, responsible for 10% of Razorpay’s overall revenue, witnessed a 40% increase in Total Payment Volume (TPV) from April to October 2023 compared to the same period in 2022.
During this timeframe, 91% of the cumulative TPV was attributed to doorstep UPI transactions, showcasing a strong preference for digital payments. SMS Pay contributed the remaining 9%. Notably, the company reported a 21% rise in the conversion of cash on delivery to digital payments, indicating a significant shift in consumer behavior towards digital payment preferences.
Razorpay has expanded its touchpoints by over 235,000 in FY23, a growth attributed to the positive impact of the Ezetap acquisition. Since the acquisition, Ezetap has undergone a transformative journey marked by product innovation, revenue diversification, and strategic partnerships. The company established crucial partnerships with banks, extending its services to customers across 15,000+ pin codes in the country, according to Arpit Chug, Chief Financial Officer at Razorpay.
In the competitive landscape of soundbox and POS devices, Razorpay faces strong competition from Paytm, boasting a subscriber base of 9.2 million merchants, and PhonePe, aggressively deploying 4 million PhonePe “SmartSpeakers” with plans to add 10 million devices by the end of the next year.
Ezetap was Razorpay’s sixth acquisition, following BillMe, a Mumbai-based digital invoicing and customer engagement startup, acquired in September. Prior acquisitions include IZealiant Technologies in March 2022, Curlec in February, TERA Finlabs in 2021, Opfin in 2019, and Thirdwatch in 2018, showcasing Razorpay’s strategic expansion and commitment to innovation in the fintech space.
