Amazon Pay India, with the objective to enhance the payments business in order to compete with other digital payment majors like Paytm, looks to acquire Tapzo, the Bengaluru-based payments app. Though the value of the deal between Amazon India and Tapzo hasn’t been disclosed, sources close to the development have stated it to be around $30 million to $40 million.
On Tuesday, Amazon launched a new service that allows individuals to pay their electricity, broadband, mobile and other such bills. The company has tied up with various billers in order to provide this service through the Amazon Pay platform.
Amazon has been seen to work on its payments services aggressively over the past two years by investing in companies like Capital Float and Acko – a digital lending company and a digital insurance firm respectively. It has also backed TTag, the digital payments company.
Amazon India now has its eyes set on Tapzo, which was previously known as Helpchat and Akosha before that. The company was founded in the year 2009 and has raised more than $20 million to date. Tapzo currently allows its users to access more than 35 applications such as Uber, Ola, Amazon, and Flipkart.
The Sequoia-backed app, Tapzo, has 5 million users and is available in a Hindi version too. The app has a total of 2 lakh ratings and the average rating is 4.5 stars. It is thus the highest rated app among all transaction applications in the country.
With the acquisition, Tapzo will help the e-commerce giant, Amazon, achieve its vision to provide convenience to its customers in terms of digital payments. Post the acquisition, the founders, including Ankur Singla and team, will join Amazon.