Today, South-East Asia is a digital payment powerhouse, having witnessed significant financial transformation over the last few years, driven by changing consumer and retail trends and more inclusive payment options. And while e-commerce is already booming in Malaysia with an estimated market size of $21 billion in 2021, an industry report said it is estimated to grow further to over $35 billion by 2025, fuelled by the emergence of new mobile payment methods.
Malaysian shoppers are more open to cross-border shopping, with 40% of online transactions happening cross-border. And with the entry of new e-commerce consumers, Razorpay believes a broader range of payment services are required. The company is confident that an acquisition such as this will further unveil new channels for global business expansion for online businesses based in India and Malaysia.
Curlec was founded by Zac Liew and Steve Kucia in 2018. The company builds new-age technology solutions on top of existing payments infrastructure, to make it easier for companies of all sizes, to collect recurring payments and take control of their cash flows. Curlec currently works with businesses across Malaysia including insurance company AXA, fintech lending firm Funding Societies, and Axiata Digital. Initially backed by 500 Global and other investors, the company’s annual revenue has been growing at nearly 5X since 2018.
Commenting on Razorpay’s first international expansion, Harshil Mathur, CEO and Co-Founder, Razorpay said, “With the experience in a heterogenous market like India over the last seven years, our expansion to the Southeast Asia payments market is timed to coincide with the company’s growing dominance in all things payments. Curlec has a similar culture like Razorpay and the same product and tech first philosophy of building products and delighting customers. With a measured approach, we look forward to learning the nuances of Malaysia, their business and customer needs, and slowly adapt and build products tailored to the SEA geography.”
In a statement, Zac Liew, co-founder & CEO of Curlec said, “We’ve long admired what Razorpay has built in India from afar and are fully aligned with a common vision of building payment and banking solutions from top to bottom, for any business. We look forward to the next phase of our journey and scaling together across Malaysia and Southeast Asia.”
Razorpay serves over 8 million businesses including the likes of Facebook, Ola, Zomato, Swiggy, Cred and achieved $60 billion Total Payment Volume (TPV) as of early December 2021. The company clocked over 300% YoY growth, second year in a row & plans to achieve $90 Bn TPV by the end of 2022.