Easebuzz, a B2B-focused, API-driven full-stack payments solution provider, has raised $4 million in a Series A round led by 8i Ventures, Varanium Capital, and Guild Capital. Former Citrus Pay founders Amrish Rau and Jitendra Gupta also participated as angel investors in this round.
This is Easebuzz’s initial funding round and Vertices Partners was the legal advisor to the company.
The startup intends to utilize this new round of funding to enhance the product team, improve sales and marketing efforts, and provide more payment APIs and solutions for small and mid-size enterprises.
Rohit Prasad, MD, Easebuzz, said, “The current funding round will help us accelerate our mission of powering digital collections and payments for every retail business in India.”
According to Rohit, its product DNA designed around eliminating friction from each collection touchpoint of payments has made it the favored partner for MSME businesses.
Easebuzz claimed that it had gained 12X growth, both in revenues and gross transaction value, and presently processes almost $3 billion of transactions a year.
The company expects to reach a $10 billion annual run rate in the upcoming year. Incubated by Symbiosis center for entrepreneurship and innovation in 2017, this bootstrapped venture has been profitable since its establishment. Easebuzz was part of JioGenNext’s Scale cohort in fintech in 2019 and profited from advice and support for their GTM strategy as well as fundraise.
“India’s $800 billion retail economy is going hyper-digital and Easebuzz is the best-positioned payments player to take advantage of this massive market opportunity,” said Vikram Chachra, Founding Partner, 8i Ventures.
According to a research report by RedSeer Consulting, the payment gateway aggregator market in India is anticipated to increase from the current Rs 9.5 trillion to around Rs 22.6 trillion in transactions worth by FY25.
Apoorv Gautam, India Head and COO of Guild Capital said “Growing digitization of merchants, driven by lockdowns and government policies favoring financial inclusion, have triggered an inflection point for the digital payment ecosystem in India.”
Easebuzz is also looking to expand across different cities of the country and will allow new services on its platform to help businesses grow on digital remittances and collections.
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