Razorpay acquires TERA Finlabs in an undisclosed deal

SaaS News -Fintech-startup-Razorpay-buys-SaaS-firm-TERA-Finlabs(source: SaaS Industry)
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Razorpay, a fintech firm, purchased TERA Finlabs, a Bengaluru-based SaaS company, in an undisclosed deal. Razorpay Capital will be able to handle the credit needs of over 10,000 Indian firms with the aid of TERA Finlab’s technological expertise.


Razorpay, a fintech startup, has acquired TERA Finlabs, a Bengaluru-based SaaS startup, in an undisclosed deal. TERA Finlabs enables embedded finance solutions for organizations by providing technology, risk, and capital solutions. TERA Finlabs is a subsidiary of GAIN Credit, a digital lender located in the United Kingdom.

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.

According to a statement by Razorpay,

Razorpay Capital, in conjunction with TERA Finlab’s technological capabilities, would be able to handle the credit needs of over 10,000 firms in India by next year, the statement said. With the introduction of Razorpay Capital in 2019, Razorpay entered the business-to-business (B2B) small and medium-sized businesses (SME) financing market.

Through our lending platform, Razorpay Capital, we have been striving to solve these cash flow challenges, making it easier for businesses to get finance and grow. And progressing in that journey, an acquisition such as this fits perfectly with our vision of developing tailor-made affordable credit solutions for the underbanked small businesses across industries so that they can digitally transform and disrupt.

Harshil Mathur, Razorpay CEO and co-founder

Mr. Mathur said that TERA FinLabs’ staff has great domain experience in credit underwriting and risk management, and Razorpay sees tremendous value in TERA Finlabs’ core lending infrastructure capabilities.

MSMEs were an underserved market for a long time. However, in the last 16 months, they have started to show rapid growth with their adoption of digital. And this has created an opportunity for significant disruptions in the lending sector – Embedded Credit is one such innovation that I’m certain will transform this space.

Pradeep Rathnam, co-founder and CEO of TERA Finlabs

He added that the comprehensive end-to-end platform provided by TERA Finlabs would enable new firms to create a scalable and lucrative credit company.

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