Razorpay acquires TERA Finlabs

Chennai: Razorpay on Monday acquired TERA Finlabs, the Indian subsidiary of UK-based digital lender GAIN Credit, for an undisclosed sum.

Bengaluru-based TERA is an AI-based SaaS platform that facilitates digital financing solutions for businesses and is expected to help Razorpay in scaling its B2B SME lending segment that it entered in 2019 with the launch of Razorpay Capital.

With TERA Finlab’s technology capabilities, Razorpay said it will be able to service the credit needs of over 10,000 businesses in India by the next year.

“This acquisition of TERA Finlabs is aligned with Razorpay’s strategy of financially supporting as many MSMEs as possible by building core-competencies in capital solutions, credit underwriting, and data-driven risk management capabilities. TERA will provide its entire technology stack, risk management capabilities, and onboarding solutions to create and enable a credit line for Razorpay’s merchant network,” RazorPay said.

This is Razorpay’s third acquisition in less than three years after Thirdwatch (an AI-driven solution that helps reduce Return-to-Origin (RTO) fraud losses in e-commerce) in 2018 and Opfin (a payroll management software company) in 2019.

Razorpay claims a growth of 40%-45% growth, month-on-month, and said it has achieved $40 billion TPV (Total Payment Volume).


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