Cashfree Payments, a leading payments solutions provider in India, has acquired one-click checkout company Zecpe, marking its second acquisition in recent times. Although the financials involved in the deal have not been disclosed, sources suggest that the deal may have valued Zecpe at $10 Mn – $12 Mn.
As part of the acquisition, the founder of Zecpe, Hriday Agarwal, will join the Cashfree Payments team as the head of ecommerce checkout, and the employees of Zecpe will also join Cashfree Payments to help scale the product. The acquisition is expected to enhance Cashfree’s direct-to-consumer (D2C) checkout capabilities and offer its merchants an elevated end-to-end checkout and payment experience.
Zecpe enables ecommerce businesses to improve checkout conversion by making the process quick and seamless for customers. Zecpe will now operate as a wholly-owned subsidiary of Cashfree Payments.
Cashfree Payments CEO and co-founder, Akash Sinha, expressed his excitement about the acquisition and said, “Zecpe’s acquisition will be an addition to the company’s D2C Payments Suite enabled for ecommerce businesses. D2C space is exploding in India and presents a fantastic opportunity to help ecommerce players increase their conversion rates and reduce COD fraud and returns. Since we have one of the largest networks of prominent brands working with us, we know this space very well. Businesses across different industries use our solutions today.”
Zecpe acquisition by Cashfree Payments to elevate end-to-end checkout and payment experience
Hriday Agarwal, founder of Zecpe, also commented on the acquisition and said, “The ecommerce industry in India is growing rapidly, and we are excited to be a part of Cashfree Payments, a leading payments solutions provider. With this acquisition, we aim to enhance Cashfree’s D2C checkout capabilities and offer merchants an elevated end-to-end checkout and payment experience.”
Cashfree Payments, founded in 2015 by Akash Sinha and Reeju Datta, operates a full-stack digital payments solution platform that enables businesses to collect payments and offers API banking solutions. In 2021, Cashfree raised funding from SBI at a post-money valuation of $200 Mn and acquired UAE-based payment solution provider Telr.
The acquisition of Zecpe is expected to further strengthen Cashfree’s position in the payments solutions market in India, which is expected to grow significantly in the coming years. The ecommerce market in India is projected to reach $200 billion by 2026, according to a report by Goldman Sachs. This presents a significant opportunity for companies like Cashfree Payments to offer innovative and seamless payment solutions to businesses operating in the ecommerce space.
In conclusion, the acquisition of Zecpe is a strategic move by Cashfree Payments to enhance its D2C checkout capabilities and offer its merchants an elevated end-to-end checkout and payment experience. With the rapid growth of the ecommerce market in India, this acquisition is expected to further strengthen Cashfree’s position in the payments solutions market and help it capture a significant share of the growing market.