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Bangalore-based payments and banking technology firm, Cashfree Payments, announced on Tuesday that it has acquired Zecpe, an online checkout platform, in an all-cash deal worth $10 million. The acquisition will help Cashfree expand its merchant base and strengthen its position in the rapidly growing e-commerce market in India.
Cashfree Payments, one of India’s leading fintech companies, has acquired Zecpe, a popular online checkout platform, in a bid to enhance its payment solutions for e-commerce businesses.
The deal was finalized in February 2023, with Cashfree acquiring 100% of Zecpe’s shares for an undisclosed amount. The acquisition is expected to bolster Cashfree’s offerings, enabling it to offer a comprehensive checkout solution to its clients.
This acquisition will help Cashfree Payments to offer additional value-added services like Return to Origin (RTO) reduction , fraud detection, and address pre-filling, Zecpe said in a press release.
Founded in 2015 by Akash Sinha and Reeju Datta, Cashfree offers a wide range of payment and banking solutions to businesses, including payment gateway, payout, and banking services. The company claims to have processed over $12 billion worth of transactions in the last year alone and has over 120,000 merchants on its platform.
On the other hand, Zecpe is a Mumbai-based online checkout platform that enables businesses to accept payments through multiple channels, including credit and debit cards, net banking, and UPI. The company, founded in 2016, has a customer base of over 1,000 merchants across various sectors, including e-commerce, hospitality, and education.
On the other hand, Zecpe is a Mumbai-based online checkout platform that enables businesses to accept payments through multiple channels, including credit and debit cards, net banking, and UPI. The company, founded in 2016, has a customer base of over 1,000 merchants across various sectors, including e-commerce, hospitality, and education.
In a statement, Akash Sinha, CEO and Co-founder of Cashfree, said, “We are excited to welcome Zecpe to the Cashfree family. The acquisition aligns with our vision to build a full-stack payments and banking technology platform that enables businesses of all sizes to digitize their financial operations. With the addition of Zecpe’s checkout platform, we will be able to offer a superior payment experience to our merchants and their customers.”
Reeju Datta, Co-founder of Cashfree, added, “The acquisition of Zecpe will also help us expand our merchant base, particularly in the e-commerce sector, where the demand for digital payments is growing rapidly. We believe that the combination of Cashfree’s scale and Zecpe’s technology will help us accelerate our growth and strengthen our position in the market.”
The acquisition comes at a time when the digital payments landscape in India is witnessing significant growth, with a surge in online transactions due to the COVID-19 pandemic. According to a recent report by the National Payments Corporation of India (NPCI), the total number of digital transactions in the country grew by 58% in 2020, reaching 4.4 billion transactions per month.
Cashfree’s acquisition of Zecpe is expected to bolster the company’s growth in the coming years and position it as a leading player in the Indian payments industry.
