Razorpay is India’s first payments service that enables businesses to accept, process, and distribute payments. It accepts credit cards, debit cards, net banking, UPI, and popular wallets like JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp.The platform is suitable for both online and mobile apps provides a complete dashboard for managing payments for users.
Founders and Team
Razorpay was co-founded by IIT Roorkee alumni Shashank Kumar and Harshil Mathur. This project began in Jaipur in 2015 as part of the Y Combinator’s startup program’s winter batch.
Both of these co-founders resigned from their employment at her business was fostered at the Rajasthan Industrial Investment Corporation (RIICO) and IIM Ahmedabad’s Centre for Innovation Incubation and Entrepreneurship’s Start-up Oasis in Jaipur (CIIE).
This company concept arose from the co-founders’ work on a crowdfunding platform, during which time they saw how convoluted India’s online payment system was. After then, they switched tracks to focus on this issue.
“We realized that most online payment gateway solutions were extremely cumbersome to get started on, especially for startups and small- and medium-sized enterprises.
When we contacted a few payment gateway companies, we were asked for our past operational records, presence of physical offices, security deposits, and very high set-up fees. Online reviews of most payment gateways in India confirmed similar bad experiences,” Said Mathur.
As a result, they developed a start-up-friendly online payment gateway that was simple to install and operate. The co-founders chose to work full-time on the Razorpay idea after performing some market surveys in the early phases to test the idea’s feasibility and subsequently gathering a favourable reaction from potential consumers.
Business Model
Every subscription collecting transaction processed through Razorpay incurs a 0.25 to 0.5 per cent fee. The Razorpay 2.0 product suite, on the other hand, accounts for around 30% of Razorpay’s overall income.
This online payment site is now aiming for a two-fold increase in average product uptake. Razorpay X and Razorpay Capital are expected to contribute up to 35 per cent of the company’s revenue, according to the team.
Fundings and Investment
The Company has raised a total of $206.5 million in financing thus far. (2020) In the middle of the coronavirus epidemic, Razorpay received a $100 million funding round in October 2020, headed by Sequoia Capital India, GIC, and current investors. Some of the major investors also include Ribbit Capital, Tiger Global, and Y Combinator.
Acquisition and Achievements
Razorpay has earned several honours and accolades throughout the years.
In 2016, Razorpay was named to Nasscom’s ‘League of Ten Companies.
PYMNTS.com awarded Razorpay the Bronze Award for Best POS Innovation in 2017.
Shashank Kumar and Harshil Mathur, co-founders, were included on the ‘Forbes 30 Under 30’ list in 2017.
Her Ranked was second in the “Financial Express Software Product of the Year” competition in 2017.
IAMAI voted Razorpay the “Best Digital Payment Facilitator” in 2018.
In the field of “Great Places to Work,” Razorpay was named one of India’s Top 50 Mid-Sized Workplaces in 2018.
Future Plans
The Company has recently concentrated its efforts on the Indian market, and the firm also intends to penetrate the South East Asian markets in the future. The team plans to acquire and invest in Fintech B2B SaaS companies.
Razorpay wants to expand its product lines – the neo banking platform Razorpay and its loan arm Razorpay Capital – with its current financing in October 2020. (an initiative to empower SMEs). By FY21, it plans to hire an additional 500 employees.
Conclusion
Razorpay has been consistent since they have started, and When it comes to future ambitions, the platform has shown a lot of potential in terms of paving the way for more growth and popularity shortly.
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