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Smartphones and the internet certainly took the world by surprise, but, at the same time, they signaled a world full of advanced technologies that would extend efficiency and availability for everyone living in it. The growth of cutting-edge software and technology thus helped in opening the gates to limitless opportunities for all the thriving sectors of the world. The banking and payments industry is one of the sectors where these developments have ushered in some major transformations. Digital payments or online payments are some of the many advantages that the new-age technologies have brought forth. The growing ways of payments and instant online payments of today are not only benefitting the banking and finance industry but the merchants and the general public as well all across the globe.
In the same field, with the vision to revolutionize the online payment mechanisms by providing transparent and developer-friendly APIs with hassle-free user integration, Razorpay was launched by Shashank Kumar and Harshil Mathur in the year 2014.
Razorpay is an Online Payment Solution in India allowing businesses to accept, process, and disburse payments with its product suite. It helps the business entities gain access to all the modern payment modes like credit and debit cards, net banking, UPI, and other popular wallets in the country namely JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp. Razorpay's online payment solutions can be integrated by both web and mobile applications.
Here's more about Razorpay, its Founders, Team, Industry, Mission and Vision, Name, Tagline, Logo, Business and Revenue Model, Competitors, Future Plans and more.
Razorpay - Company Highlights
| Company Name | Razorpay |
|---|---|
| Headquarter | Bangalore |
| Sector | Fintech , Financial Services |
| Founders | Shashank Kumar, Harshil Mathur |
| Founded | 2014 |
| Funding | $741.6 mn (December 2021) |
| Revenue | $110.61 mn (Rs 844 crore in FY21) |
| Valuation | $7.5 bn (December 2021) |
| Website | razorpay.com |
Razorpay - About and How it works
Razorpay - Industry
Razorpay - Founders and Team
Razorpay - Startup Story | How did it start?
Razorpay - Mission and Vision
Razorpay - Name, Tagline and Logo
Razorpay - Business Model and Revenue Model
Razorpay - Competitors
Razorpay - Funding and Investors
Razorpay - Acquisitions
Razorpay - Growth and Revenue
Razorpay - Awards and Recognition
Razorpay - Future Plans
Razorpay - About and How it works
As mentioned earlier, Razorpay enables online payments by providing developer-friendly APIs, powered by an effective integration process. Razorpay also offers a comprehensive dashboard to manage payments, as well as other plugins and integration suites for all major backend technologies and e-commerce platforms.
In September 2017, Razorpay launched four products - Route, Smart Collect, Subscriptions, and Invoices, which allow businesses to manage multiple aspects of money movement including collection, reconciliation, and disbursal.
During the same time, Razorpay also announced that it was entering the SME lending space with its subsidiary venture called Razorpay Capital. It is a lending platform that is designed to support Small and Medium Enterprises with instant and easy access to lenders. This initiative is aimed at solving liquidity and cash-flow challenges by providing these firms with quick settlements and collateral-free loans. A beta version of the platform was launched in September 2018 and has already disbursed $30 million in loans, thereby hoping to finish with an exit run rate of $100 million in March 2018.
Also, Razorpay added two new features in its services offered. These are respectively called ‘Partial payments’ and ‘Batch Uploads’.
- Partial Payments- allows the end-users to make payments in part against a particular order ID instead of making the entire payment at once
- Batch Uploads- lets the business entities generate and process links in bulk rather than creating individual links by uploading a single file containing collect order details.
Razorpay X (Comprehensive Banking Platform) is an AI-driven API banking platform, this product is set to fundamentally transform how businesses move money. The account number provided enables businesses to manage all forms of pay-outs (salary, vendor payments through NEFT, RTGS, IMPS, UPI) and receivables on Razorpay itself. Posing as a unique solution, businesses can now do everything and more with Razorpay that they were existentially doing with banks till now. Lately, there has been a significant enhancement to the existing online payment mechanism. Razorpay has also launched more new features to its checkout. These are essentially called Affordability, Personalisation, and Native OTP.
Vidhi Punamiya
Razorpay - Industry
The Indian market for fintech has seen massive growth in the past decade and has been hailed as the world's fastest fintech industry in terms of growth where over 67% of around 2,100 fintech companies have been set up if we look back at the last 5 years.
As per the Razorpay Team, the Indian fintech market will touch Rs 6.2 lakh crore by 2025. It also added that COVID-19 has accelerated the company's digital payments segment.
Razorpay - Founders and Team
Razorpay is co-founded by IIT Roorkee alumni Shashank Kumar and Harshil Mathur.
Harshil Mathur
The CEO and Co-founder of Razorpay Harshil Mathur is an IIT Roorkee alumnus who completed BTech in Technology. Mathur further went on to join Y-Combinator in the W15 batch in 2015. Harshil started his career as a Wireline Field Engineer at Schlumberger. After his brief stint with the company, Mathur then decided to found Razorpay in 2014 with Shashank Kumar.
Shashank Kumar
Shashank Kumar is known as the Co-founder and CTO of Razorpay. He was also a former IIT Roorkee student who completed his BTech in Computer Science before attending Y-Combinator in 2015. After completing 3 months as a research intern in the Computer Science and Engineering Department at the University of Minnesota, Kumar joined another internship at Microsoft as a Software Development Engineer. Concluding 3 months as a Microsoft intern, Kumar eventually joined as a Vice President at SDS Labs before he joined as a Software Development Engineer at Microsoft. He worked as an employee with the software giant for less than 2 years and then decided to part his ways and co-founded Razorpay.
Razorpay has more than 1000 employees working with the company, as of December 2021.
Razorpay - Startup Story | How did it start?
This startup idea originated when the co-founders were working on the crowdfunding portal and in the process came to realize how muddled the online payment mechanism was in India. Besides, they also discovered that the US-based payment systems are not ideal for the Indian markets, especially if we look at the credit card penetration. Following these, they changed tracks to work on the payments problem in India, where the implementation of technology was really tough, the rate of the payment failures was considerably high and the pricing that was available earlier, lacked transparency.
“We realized that most online payment gateway solutions were extremely cumbersome to get started on, especially for start-ups 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.
They thus started up to build a friendly online payment gateway that would be easy to integrate and use. After conducting some market surveys in the initial stages to verify the feasibility of the idea and then accumulating a positive response from potential customers, the co-founders decided on starting to work full-time on the Razorpay idea.
This initiative was originated in Jaipur as a part of the winter batch of Y Combinator's startup program in 2015. Eventually, both these co-founders quit their respective jobs at Microsoft and Schlumberger after being supported by Startup Oasis in Jaipur, set up jointly by the Rajasthan Industrial Investment Corporation (RIICO) and IIM Ahmedabad’s Centre for Innovation Incubation and Entrepreneurship (CIIE). Razorpay is also regarded as the second India-focussed company to be chosen by the Y-Combinator program, the first being ClearTax.
Devashish Shrivastava
Razorpay - Mission and Vision
As part of Razorpay's mission and vision, the company ensures that the "businesses find it easy to accept and receive payments."
Razorpay - Name, Tagline and Logo
Razorpay operates with a tagline that says, “Quest For Excellence," which is decided because it justly manages to capture the spirit of Gyarahalli Thammayya Groups.
Razorpay - Business Model and Revenue Model
Razorpay charges 0.25 - 0.5% fees on every subscription collection transaction made through their gateway. With the emergence of Razorpay 2.0, the company has seen a growth in its revenue streams. It now contributes about 30% of Razorpay’s total revenue generation. This online payment portal is now looking to increase its average product adoption from one to two. The team expects RazorpayX and Razorpay Capital to contribute close to 35% of the total company's revenues.
Razorpay - Competitors
The online payments market is fairly crowded when it comes to ventures operating in the sector. In a market scenario like this, Razorpay competes with both well-established and new entities like:
- InstaMojo
- PayPal
- Paytm Business
- PayU
- Payoneer
- GoCardless
- Apple Pay for merchants
- Oxigen
- Citrus Pay
There are also players like and more operating in the same market.
Shubham Kumar
Razorpay - Funding and Investors
Razorpay has raised total funding of $741.6 Million as of December 2021.
The company raised $375 mn in a recent Series F funding round with the help of Alkeon Capital, Lone Pine, and TCV, which were the lead investors of the round the company saw on December 19, 2021. Furthermore, this round also saw other existing investors like Tiger Global, Sequoia Capital India, GIC, and Y Combinator. The Series F round is expected to help the company ramp up its banking suite, RazorpayX. With this round, the company has now become the most valued fintech startup in India.
The company's October 2020 funding round led by Sequoia Capital India, GIC, and existing investors of $100 million has given Razorpay a "Unicorn" Status amidst the coronavirus pandemic.
"We at Razorpay have always been a payments company, and our focus has always been financial solutions. With this funding we want to go further in our reach. We aim to build deeper tech products and solutions, as we always have done" - Says Harshil Mathur, Co-Founder & CEO, Razorpay
Here are the funding details of Razorpay below:
| Date | Series | Amount | Investors |
|---|---|---|---|
| December 19, 2021 | Series F | $375M | Lone Pine Capital, Alkeon Capital and TCV |
| September 20, 2021 | Venture Round | - | Salesforce Ventures |
| April 19, 2021 | Series E | $160M | Sequoia Capital, GIC |
| October 12, 2020 | Series D | $100M | GIC, Sequoia Capital |
| June 18, 2019 | Series C | $75M | Ribbit Capital, Sequoia Capital |
| January 15, 2018 | Series B | $20M | Tiger Global, Y Combinator |
| July 1, 2016 | Corporate Round | - | MasterCard |
| October 27, 2015 | Series A | $9M | Tiger Global |
| March 23, 2015 | Seed | $2.6M | Y Combinator, Kunal Bahl & Rohit Bansal, Punit Soni, Amit Gupta & Naveen Tewari, Kunal Shah & Sandeep Tandon |
Razorpay - Acquisitions
Razorpay has acquired 5 companies, as of March 16, 2022. The acquisition of IZealiant Technologies on March 16, 2022, was the last acquisition of RazorpayThe team of IZealiant Technologies is to be joining Razorpay after the acquisition. It previously acquired TERA Finlabs on Jul 19, 2021, before the company acquired Curlec, a Fintech startup from Malaysia. The acquisition was announced when the prominent Indian Fintech company acquired a majority of the stakes in Curlec on February 8, 2022.
Here's listing the 5 acquisitions of the company:
| Acquiree Name | Date | Price |
|---|---|---|
| IZealiant Technologies | March 16, 2022 | - |
| Curlec | February 8, 2022 | - |
| TERA Finlabs | July 19, 2021 | - |
| Opfin | November 23, 2019 | - |
| ThirdWatch | August 5, 2019 | - |
Razorpay - Growth and Revenue
- Recorded exponential growth rate since inception
- Currently powers more than 170,000 small & large businesses
- Razorpay clients include Aditya Birla Capital, NSE, and Vogue India to name a few
- Recording a healthy growth rate of 40-45% month-on-month
- Merchant count geared up to 3,00,000 in 2019
- Claims to process total payments worth around $50 billion annually
- Witnessed an impressive 3X in its transaction volume, which was registered at around 400% in September 2021
- The fintech startup has deployed its ZealPro product suite across 50+ banks spread over 18 countries in Asia and Africa
- Claims to process digital payments for more than 200K small and large companies including Airtel, Aditya Birla Capital, BookMyShow, and more
Razorpay powers payments for over five million businesses, including the likes of Airtel, BookMyShow, Facebook, Ola, Zomato, Swiggy, and Cred among others, and is all set to double this to 10 million by the end of this year (2020).
The overall Razorpay revenue was marked at Rs 519.4 crore in FY20, which saw significant growth to become Rs 844 crore in FY21. Its revenue from sales, which were reported to be Rs 508.9 crore in the previous fiscal, grew by 65.2% to stand at Rs 841.2 crore. The company turned profitable in FY21, and has successfully managed to pull of a standalone revenue of Rs 7 crore.
Ashwini
Razorpay - Awards and Recognition
The various awards and recognitions that Razorpay received throughout the years include:
- 2018 - Recognised as one of India's Top 50 Mid-Sized Workplaces in the category of “Great Places to Work.”
- 2018 - Awarded by IAMAI as the “Best Digital Payment Facilitator.”
- 2018 - Awarded by LinkedIn as India’s 25 Most Sought-after Companies to Work for.
- 2017 - Was a runner-up for the “Financial Express Software Product of the Year.”
- 2017 - The co-founders Shashank Kumar and Harshil Mathur got selected for the 'Forbes 30 Under 30'.
- 2017 - Backed the Bronze Award for the Best POS Innovation by PYMNTS.com.
- 2016 - Made it in the Nasscom 'League of 10' Companies.
AshwiniRazorpay - Future Plans
Recently, Razorpay is focused on capturing the Indian market. As per their future plans, the company aims to enter the South East Asian markets too. The Southeast Asian countries will be the company's primary focus, and will act as the stepping stone for its plans of global expansion ahead. The team will also be looking to acquire companies and invest in the Fintech B2B SaaS space in 2022. Razorpay has also revealed its plans of hiring up to 600 employees in order to strengthen its team further to grow.
"Our technology is replicable across other emerging markets too which face similar issues." Said Harshil.
Razorpay is also looking to further grow its product lines - the neobanking platform Razorpay, and its lending arm - Razorpay Capital (an initiative to empower SMEs).
Razorpay - FAQs
What is the transactional limit for Razorpay?
Razorpay encourages transactions up to a maximum payment of Rs 5,00,000. However, this limit can also be increased by speaking to Razorpay customer service support.
How much does Razorpay charge per transaction?
Razorpay charges around 2% per transaction according to its standard plan designed for small and medium-sized businesses and individuals.
Does Razorpay refund money?
In case of an incomplete or failed payment, Razorpay refunds the amount back to the source.