Bangalore-based smart digital payment solution provider Ezetap, which wants to grow its sales and operations across India and abroad, has raised $16 million in a fresh round of funding.
The current round is led by JS Capital Management, the VC arm of Jonathan Soros. Existing investors, Social Capital and Hong Kong-based Horizons Ventures, also increased their stake in the digital payments company. As a part of the investment, Salil Seshadri, CIO at JS Capital Management, will join the Board, the company’s press release states.
Commenting on the development, JS Capital Management founder and CEO Jonathan Soros said, “We have been watching what’s been going on in India fintech for several years, and have been impressed by the number of technical, business, and operational challenges that Ezetap has solved. Ezetap is democratizing payments in a country that is going digital at an unprecedented rate, but the impact of that transformation will be felt globally.”
Ezetap was started in 2011 by Silicon Valley veterans by Abhijit Bose, Bhaktha Keshavachar, and Sanjay Swamy. Today, Ezetap is one of the pioneers in the mobile point of sale (POS) market and claims to be the first company to focus on integrating that payment experience into other software applications and systems used by merchants to run their businesses.
“India is on the brink of a massive surge in consumer consumption, but not until the underlying payments infrastructure is securely in place,” said Chamath Palihapitiya, founder and CEO of Social Capital. “Ezetap is in an incredible position as the leading platform for Indian merchants, with deep IP and no obvious US proxy – it’s like a combination of Stripe, AWS and Android, built for the complexities of the Indian market. This team has balanced patience and ambition as they’ve solved a truly hard problem, and now they’re starting to really scale and claim Ezetap’s place as one of the most important emerging technology platforms in India.”
While most payment companies today still make money from transaction fees, Ezetap was one of the first companies to move payments to a pure software-as-a-service business model. Ezetap created India’s first universal payments platform in 2015, allowing merchants to accept any digital transaction including physical cards, online payments, mobile wallets, or one-click payments via India’s new UPI system that allows any device or interface to use biometric data, SMS, or digital QR codes.
The company will be using the investment to innovate further and expand its payments platform. Besides, the company will invest the funds in an aggressive sales and marketing effort and scale its suite of enterprise solutions. Ezetap has set sights on monthly transaction volumes of Rs3,000 crores in one year, up from Rs800-900 crore a month it does currently.