Indian fintech firm Razorpay has acquired a lending startup TERA Finlabs for an undisclosed amount.
TERA Finlabs, based in Bengaluru in India, is a subsidiary of UK-based digital lender Gain Credit. It provides technology-based solutions, such as risk management, customer onboarding, verification, underwriting, and collections, to digital lenders.
Razorpay, India’s Unicorn startup and a payment gateway provider, said in a press statement that the acquisition aligns with its plans to support micro, small, and medium-sized enterprises by building capital solution
s, credit underwriting, and data-driven risk management capabilities.
The company hopes that its B2B-lending arm Razorpay Capital and TERA Finlab’s technology together, post the acquisition, will be available to more than 10,000 businesses in India by next year.
“In India, banks are wary of providing business loans to startups and new SMEs due to the risks attached to new revenue models of startups. Through our lending platform, Razorpay Capital, we have been striving to solve these cash flow challenges, making it easier for businesses to get finance and grow,” Razorpay CEO and founder Harshil Mathur said in a statement.
Razorpay provides payment solutions to over 8 million businesses in India, including Zomato, Ola, Swiggy, Facebook, and Airtel. The company, which competes with Paytm on the payment gateway segment, aims to acquire 200 million customers by 2021.
