Razorpay said it has acquired AI-based risk tech SaaS (software-as-a-service) platform TERA Finlabs for an undisclosed sum.
This is the third acquisition for the fintech company after foraying into the B2B SME lending space with the launch of Razorpay Capital in 2019, it said in a statement.
“The team at TERA FinLabs comes with exceptional domain knowledge in credit underwriting & risk management and we see immense value in TERA Finlabs core lending infrastructure capabilities,” said Harshil Mathur, CEO and Co-Founder, Razorpay.
Razorpay Capital, along with TERA Finlab’s technology capabilities, will service the credit needs of over 10,000 businesses in India by the next year, the company said.
“We are excited that the strengths of Razorpay and TERA Finlabs are now coming together to ensure that small businesses aren’t burdened by the short-term uncertainties. Our robust end-to-end platform will enable new businesses to build a scalable and profitable credit business,” said Pradeep Rathnam, Co-Founder and CEO, TERA Finlabs.
Razorpay acquired Thirdwatch, an AI-driven company that helps reduce Return-to-Origin (RTO) fraud losses in e-commerce in 2018, and Opfin, a payroll management software company, in 2019.
The company said it has witnessed a 40-45 per cent growth (on-month) and has achieved $40 billion TPV (Total Payment Volume).
Razorpay currently powers payments for over 8 million businesses, including Facebook, Airtel, Ola, Zomato, Swiggy, Cred and ICICI Prudential, and is set to reach 200 million customers this year.
TERA Finlabs is an Indian subsidiary of GAIN Credit, a leading UK digital lender launched in 2018 to expand their global footprint in digital lending.