That is Razorpay’s fourth acquisition this yr and its seventh total.
The acquisition, which is predicted to propel it into the loyalty and rewards management area, comes shut on the heels of its $200-million acquisition of offline point-of-sale (PoS) agency Ezetap in August.
Below the deal, PoshVine’s 36-member workforce will be a part of Razorpay and function its loyalty and rewards vertical.
With the acquisition, Razorpay is predicted to assist banks improve buyer retention for his or her credit score choices by means of new service provider presents
“We proceed to see an even bigger alternative to work with banks and assist them improve their monetary infrastructure,” Shashank Kumar, managing director and cofounder of Razorpay, instructed ET. “Whereas banks can purchase a buyer for his or her bank card providing, they’re uncertain if it will likely be used. That’s the place we see the rewards and loyalty play coming in, the place it’s essential to offer the proper supply in the proper context.”
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The acquisition is predicted to assist enable retailers to automate the method of pitching low cost presents to banks; present well timed and customised presents to prospects and permit them to pay by means of credit score factors of banks throughout service provider checkouts.
Razorpay additionally expects to boost the offline buying expertise for purchasers by integrating PoshVine’s loyalty and reward choices on its point-of-sale community.
Based in 2011, PoshVine permits banks, fintech companies and cost networks to extend buyer engagement by means of its presents and reward administration options. Presently, its platform aggregates presents from over 5,000 retailers and brings it in a single resolution to banks, which is then prolonged to bank card holders.
The bootstrapped startup works with over 20 banks and card networks comparable to SBI Card, HDFC Bank, Visa, DBS, Kotak Mahindra Bank, AU Small Finance Bank, American Specific (Amex) throughout India and Southeast Asia.
Its buyer base in Southeast Asia is predicted to bolster Razorpay’s presence within the area following its worldwide foray in February with the acquisition of Malaysian fintech agency Curlec.
PoshVine will get entry to Razorpay’s giant base of over 8 million retailers.
“With our offline and on-line operations, there’s a large portfolio of spends that we’re managing. So, we are actually trying to supply a bespoke platform for companies the place they will create presents, loyalty and rewards,” Kumar added.
Presently, Razorpay’s resolution stack for banks contains card tokenisation resolution, ‘Razorpay TokenHQ’ and plug-n-play recurring funds interface ‘MandateHQ’.
With the acquisition, the fintech unicorn – final valued at $7.5 billion – has stepped up its combat in opposition to rival startup unicorn Pine Labs, which additionally forayed into the web cost gateway with the launch of ‘Plural’ in October final yr.
In 2021, Pine Labs – which earns most of its income by means of offline funds providers – additionally acquired Singapore-based loyalty funds startup Fave with plans to launch the service in India and enter the buyer funds area.
Razorpay’s different acquisition this yr contains funds options supplier IZealiant Applied sciences.