Amazon’s online payments processing service Amazon Pay is looking forward to acquiring personal assistant platform Tapzo in a part-stock and part-cash deal with an aim to build on its payment offering and create multiple use cases for it.
The deal has been valued at between $40-45 million. The stock component will give a cash-out to investors whereas Ankur Singla and Vishal Pal Chaudhary, co-founders of Tapzo will get some cash along with shares in Amazon.
The sources have claimed that the deal was completed last week and Tapzo’s founders are likely to get on board Amazon Pay’s team in India.
Founded in 2010, Tapzo is an aggregator platform that allows users to access over 35 apps including Amazon, Flipkart, Ola, Uber, and more from its interface. It provides a group of transaction use cases to customers and allows them to make mobile, DTH and data card recharges, bill payments, order cabs and food, book flight and bus tickets and avail of home services and much more.
The company has been backed by investors like Sequoia Capital, Singapore-based RB Investments and Ru-Net amongst others.
With this acquisition, Amazon’s strategy of increasing frequency and transactions for its Amazon Pay business is likely to be fulfilled, which fights a tough competition with PhonePe and Paytm for a sizeable share of the market.
The readymade group of services offered by Tapzo fits perfectly within Amazon Pay’s strategy. The payments sector is growing at a great pace these days and it is looking up to a lot of fundings and acquisitions for the purpose of growing even more.