Razorpay is one of the leading payment gateway solutions provider in India. With its valuation now crossing USD 1 billion, it has turned out to be one of the fastest startups to achieve the coveted ‘Unicorn’ tag. The company was founded in 2014 and is headquartered in Bengaluru. Razorpay has made a difference to thousands of businesses by allowing them to carry out a range of transactions online such as accept, process and disburse payments.
With Razorpay, businesses can integrate all payment options on their website / mobile application. These include netbanking, debit / credit card, UPI, and most of the popular digital wallets such as JioMoney, Ola Money, Mobikwik, PayZapp, FreeCharge, Airtel Money, etc.
Over the years, Razorpay has expanded its operations to include other fintech services. While payment gateway continues to be its primary revenue generator, the company has also ventured into new verticals such as neo-banking services, capital lending and payroll automation & compliance. It is expected that these new services will contribute more to the company’s revenue in the coming years.
The idea for Razorpay came to the founders when they noticed that payment gateways for websites and apps were available mostly to large organizations. This created a bottleneck for small and medium enterprises (SMEs), as they were unable to unlock the full potential of online sales. The founders had cushy jobs with the world’s leading companies, but they were essentially bored and were looking for more challenging stuff. With the mission to make payment gateway accessible to all types of businesses at affordable rates, the founders launched Razorpay in 2014.
Since then, Razorpay has grown by leaps and bounds. The company currently has five million merchants on its platform. On an average, around 5k merchants are on-boarded on its platform every day. Total value of transactions on its platform in FY2020 was more than USD 25 billion.
Razorpay has received USD 206.6 million investments via six rounds of funding. Key investors include Y Combinator, Sequoia Capital, Ribbit Capital, Tiger Global, Matrix Partners India, and GMO Venture Partners.
Razorpay has made two acquisitions in 2019. One of these was Opfin, a payroll processing platform. The other was ThirdWatch, a cyber-security firm that uses AI to prevent banking, digital and e-commerce frauds.
Razorpay competes with other payment gateway companies such as Billdesk, CCAvenue, Instamojo, Paytm, PhonePe, Juspay and Oxigen.
About the Founders:
Razorpay was founded by IIT Roorkee alumni, Harshil Mathur and Shashank Kumar. Harshil currently serves as the CEO of Razorpay. Prior to launching Razorpay, he had worked with Schlumberger. Shashank Kumar is currently handling product, technology and other internal functions at Razorpay. Earlier, he had worked with Microsoft.