TERA Finlabs is an Indian subsidiary of UK-based digital lender, GAIN Credit.
The company, however, did not disclose the financial details of the transaction.
“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,” a statement said.
Razorpay Capital along with TERA Finlab’s technology capabilities will be able to service the credit needs of over 10,000 businesses in India by next year, the statement said. The fintech start-up had forayed into the business-to-business small and medium-sized enterprises lending space with the launch of Razorpay Capital in 2019.