Razorpay makes international foray with Curlec acquisition


Razorpay, a platform that provides digital payments and financial services to businesses, said on Tuesday that it will expand into Southeast Asian markets and has picked up a majority stake in Malaysian fintech firm Curlec. With the acquisition, Razorpay is looking to expand its core payments services to Southeast Asian customers and launch recurring payments in new geographies. It is also expected to enable cross-border payments for local Southeast Asian businesses with the Curlec acquisition.

To start with, Razorpay will take its payments stack, including payment links, payment pages and gateway services, to the Malaysian market. Over time, it is expected to take these services to other key Southeast Asian markets including Indonesia, Thailand and the Philippines.

The entire Curlec team will join Razorpay as a part of the deal. While the Indian fintech firm declined to comment on the details of the acquisition, it said it valued Curlec at roughly $20 million. Razorpay will also look to invest more in the firm and acquire a 100% stake in it over time.

With this, Razorpay joins Indian fintech companies such as Pine Labs that have expanded to Southeast Asia.

The acquisition comes just months after the company raised $375 million in December at a valuation of $7.5 billion. The round was co-led by hedge firms and private equity companies Lone Pine Capital, Alkeon Capital and TCV. The company has mopped up a total of $741.5 million in equity investments since its inception in 2014.

“We are seeing that Malaysia is becoming similar to India in terms of fintech and digital payments. By combining forces with Curlec we can significantly ramp up in Southeast Asia. Curlec has scaled five-fold since 2018 and with the acquisition we will have a local team in Malaysia and Southeast Asia,” said Harshil Mathur, cofounder and chief executive of Razorpay.

Founded in 2018, Curlec builds technology solutions on top of existing payments infrastructure to make it easier for companies of all sizes to collect recurring payments. It works with hundreds of businesses across Malaysia, including notable names such as insurance firm AXA, fintech lending firm Funding Societies, and Axiata Digital.

The current deal marks the first international acquisition for Razorpay and its fourth overall. It had previously acquired AI-based risk tech software platform TERA Finlabs in 2021; payroll and HR management solution Opfin in 2019; and fraud analytics platform Thirdwatch in 2018. It has also invested in B2B logistics provider Shiprocket and small business advisory platform MSMEx.

Razorpay serves over eight million businesses including the likes of Facebook, Ola, Zomato, Swiggy and Cred, and has recorded over $60 billion in total payment volume (TPV) as of early December 2021.