India's Razorpay announced on Thursday that it has acquired offline payments company Ezetap, marking the Sequoia Capital-backed company's latest wager on the payments sector in a deal that was reportedly worth $150 million, according to a source with knowledge of the matter.

The acquisition was the largest one made by Razorpay, a company that provides payment gateway services for online merchants and is valued at over $7 billion, according to a release.

It said that the agreement would strengthen initiatives to reach the offline sector, which still represents the majority of electronic payments in India. Point-of-sale devices are made by Ezetap, which also processes over $10 billion in transactions annually in India.

Razorpay co-founder Shashank Kumar said Ezetap will help it develop in this area. “There is still a large portion of offline payments and in-person payments that we don’t cover,” he said.

According to the source, Ezetap will continue to run independently following the acquisition, and the agreement involves a $150 million payout to the company, with an additional $50 million payment possibly contingent upon how well it performs over the next year.

According to Kumar in an interview, the agreement will also enable Razorpay to cross-sell its services, such as loan offerings, to offline businesses. Razorpay presently provides services to over 8 million businesses and has handled payments totalling $80 billion since its launch roughly eight years ago.

The transaction takes place as Indian solution providers fight for a firm hold on both online and offline payments. According to Reuters, India's Pine Labs, which for years only processed offline payments, started processing internet transactions last year with the goal of reaching $4 to $5 billion in monthly transactions in two years.

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