In a significant milestone for the Indian fintech ecosystem, Razorpay India has made headlines with the launch of its international payment gateway in Malaysia, in collaboration with Curlec. This partnership marks Razorpay’s foray into the global market, making it the first Indian startup to do so. This article delves into the details of this groundbreaking collaboration and the potential impact it holds on businesses in both India and Malaysia.
Razorpay’s Expansion Plans
Razorpay made a tactical move in February 2022 when it paid $20 million for the majority of Curlec, a Kuala Lumpur-based financial company. This marked the beginning of Razorpay’s ambitious global expansion plans. The acquisition was followed by a subsequent balance stake acquisition, set to be completed in 2023.
Curlec: A Leading Fintech Solution Provider in Malaysia
Curlec, founded in 2017 by Zac Liew and Steve Kucia, has already established itself as a prominent player in the Malaysian fintech landscape. Similar to Razorpay, Curlec specializes in business-to-business payment solutions, offering a range of services such as recurring and subscription-based payment collection, billing, payouts, and other payment solutions.
With an impressive clientele comprising over 700 Malaysian businesses, including prominent names like Tune Protect, CTOS, Courts, Mary Kay, and The National Kidney Foundation, Curlec has proven its mettle in the market. The recent launch of the Curlec payment gateway will further enhance its reach, enabling it to cater to more than 5,000 businesses with a target of RM 10 billion (approximately $2 billion) in annualized gross transaction value (GTV) by 2025.
Razorpay’s Vision for Global Payment Solutions
Shashank Kumar, the Managing Director and Co-Founder of Razorpay India expressed his optimism about this significant step towards global expansion. He emphasized Razorpay’s recognition of the power of payments in Malaysia and its commitment to solving payment problems on a global scale. Drawing from their extensive experience in the diverse and dynamic Indian market, Razorpay aims to tackle different challenges and provide seamless payment solutions worldwide.
Razorpay’s Impressive Growth Trajectory
Razorpay’s recent achievements have solidified its position as a major player in the Indian fintech landscape. In 2021, the company raised an impressive $375 million in its Series F fundraising, with participation from esteemed investors such as Lone Pine Capital, Alkeon Capital, and TCV. Following this funding round, Razorpay was valued at $7.5 billion, securing its status as the second most valuable fintech company in India, after Paytm.
Curlec by Razorpay: A Full-Stack Payment Solutions Provider
The launch of ‘Curlec by Razorpay’ signifies a major milestone for both Razorpay and Curlec. This strategic partnership positions them as a formidable force in the payment solutions market, combining world-class technology capabilities with an in-depth understanding of the local payment ecosystem. The synergies created through this collaboration are expected to yield exponential growth for both companies.
Zac Liew, Co-Founder and CEO of Curlec, highlighted the significant traction they have already gained in sectors such as insurance, lending, and savings. With a remarkable 110% increase in transaction volumes, Curlec is poised to deliver an unrivaled payment experience for customers in the coming years. Their ambitious target is to achieve a 10x growth within the next two years, solidifying their position as a leading payment solutions provider.
Razorpay’s partnership with Curlec to launch a global payment gateway marks a significant milestone for both companies and the Indian fintech ecosystem as a whole. With their combined expertise, Razorpay and Curlec are set to revolutionize the payment landscape, offering seamless and secure solutions to businesses worldwide. As Razorpay continues to expand its global footprint, it opens up new avenues of growth for Indian startups, signaling the rise of India as a key player in the international fintech arena.
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