Razorpay acquires lending startup TERA Finlabs

Business-focused payment gateway and neo banking platform Razorpay has acquired TERA Finlabs, a Bengaluru-based lending startup for an undisclosed amount. With this acquisition, TERA will help create and enable a credit line for Razorpay’s merchant network.

This is the third acquisition by the Harshil Mathur-led Razorpay in a span of three years. Its previous acquisitions include Thirdwatch, an AI-driven company that helps reduce RTO fraud loss in e-commerce in 2018, and Opfin, a payroll management software company in 2019.

Founded by Pradeep Rathnam, TERA offers digital lending solutions for financial institutions and consumer tech companies. Its AI-enabled solutions simplify and automate customer onboardings, verifications, underwritings, and collections for lending institutions.

TERA Finlabs is a unit of OYE Fintech Private Limited. OYE’s primary investor and incubator is UK-based digital lender GAIN Credit.