Smartphones and the internet have changed the world in many ways. They have made everything faster, easier, and more accessible. One of the areas where this change has been huge is in payments.
With digital payments, people can pay for things online quickly and securely. This change has not only helped businesses but has also made life easier for customers everywhere.
Razorpay – Company Highlights
- Company Name – Razorpay
- Headquarters – Bangalore
- Sector – Fintech, Financial Services
- Founders – Shashank Kumar and Harshil Mathur
- Founded – 2014
- Valuation – $7.5 billion
- Website – www.razorpay.com
Razorpay – A Game Changer in Online Payments
It is an online payment solution founded in 2014 by Shashank Kumar and Harshil Mathur.
The company helps businesses accept, process, and send payments through different methods like credit cards, debit cards, UPI, and digital wallets like PayZapp and FreeCharge.
It makes it easy for businesses to integrate these payment methods into their websites or mobile apps.
How Razorpay Works
It provides developer-friendly APIs that help businesses integrate payment systems easily. It offers a simple dashboard to manage payments and helps businesses handle tasks like collecting, reconciling, and disbursing money.
In 2017, it launched four products, Route, Smart Collect, Subscriptions, and Invoices, that helped businesses manage payments more effectively.
Expanding Services
It also entered the small business lending space through its Capital. This platform helps small and medium businesses get easy access to loans without collateral.
Since its launch in 2018, Razorpay Capital has already provided $30 million in loans.
It added more features to make payments easier. “Partial Payments” lets customers pay in parts, and “Batch Uploads” allows businesses to process multiple payments at once.
The Rise of RazorpayX
It is an AI-powered banking platform that helps businesses manage their finances more easily. Businesses can use this to handle payments, pay employees, and manage vendor payments.
With this platform, it is changing how businesses handle money, much like how traditional banks do.
Razorpay’s Growth in India’s Fintech Market
India’s fintech industry has grown rapidly, and it is a major player. By 2025, the Indian fintech market is expected to reach Rs 6.2 lakh crore.
It has benefited from the digital shift accelerated by the COVID-19 pandemic, and it continues to grow.
The Founders of Razorpay
It was co-founded by Shashank Kumar and Harshil Mathur, both graduates of IIT Roorkee. Before starting this, they worked in companies like Microsoft and Schlumberger.
Their experience showed them the gaps in India’s payment system, especially the challenges in using U.S.-based payment systems in India. They decided to build a payment solution that would be more suited to the Indian market.
The Startup Journey
Its idea started while the founders were working on a crowdfunding platform. They realized that the payment systems available were not efficient or user-friendly, so they decided to create a better one.
After getting positive feedback from potential customers, they started this in 2014. It was accepted into Y Combinator’s startup program in 2015, which gave them the boost they needed to grow.
Razorpay’s Mission and Vision
Its mission is to make it easy for businesses to accept and send payments. The company aims to revolutionize online payments by providing easy-to-use, secure, and affordable solutions.
It also helps businesses manage their finances through tools like RazorpayX, which offers features like current accounts and working capital loans.
Razorpay’s Business Model
It makes money by charging a 2% fee on every subscription collection made through its platform. This model has helped it grow quickly, and it now offers many other services, including lending and AI-powered banking solutions.
These new services are expected to contribute to 35% of the company’s revenue in the future.
Partnerships and Global Expansion
It has partnered with several companies to expand its services. For example, it teamed up with Truecaller in 2023 to enhance the shopping experience for customers.
In 2023, it also launched “Turbo UPI” in partnership with Axis Bank and NPCI. Additionally, it partnered with PayPal and other companies to help businesses accept payments globally.
Funding and Growth
It has raised $815.7 million in funding. In December 2021, the company raised $375 million in its Series F funding round, making it the most valuable fintech startup in India at the time, with a valuation of $7.5 billion.
The company has been growing rapidly and is one of the top players in the Indian fintech space.
Razorpay’s Products and Features
It offers a variety of products to help businesses with their payment and financial needs. These include:
- Curlec by Razorpay: An international payment gateway for Malaysia.
- Turbo UPI: A faster way for businesses to use UPI for payments.
- Payment Reconciliation Service: Helps businesses track and manage payments.
- Affordability Widget: Helps customers choose affordable payment options.
Awards and Recognition
Razorpay has received several awards over the years.
- 2022- At the ET Startup Awards, Razorpay received the “Startup of the Year” award.
- 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.
Final Words
It has come a long way since its founding in 2014. The company’s innovative products and solutions have transformed the way businesses and customers handle payments.
With its focus on easy integration, secure payments, and support for small businesses, it is set to continue its growth and shape the future of digital payments in India and beyond.
Razorpay FAQs
What is Razorpay?
Razorpay is an online payment solution that helps businesses accept, process, and send payments.
When was Razorpay founded?
Razorpay was founded in 2014 by Shashank Kumar and Harshil Mathur.
What payment methods does Razorpay support?
Razorpay supports credit cards, debit cards, UPI, and digital wallets like PayZapp and FreeCharge.
How does Razorpay help businesses?
Razorpay makes it easy for businesses to integrate payment systems into their websites and mobile apps.
What is RazorpayX?
RazorpayX is an AI-powered banking platform that helps businesses manage their finances.
What is Razorpay Capital?
Razorpay Capital is a platform that offers easy loans to small and medium businesses.
How does Razorpay make money?
Razorpay charges a 2% fee on every subscription collection made through its platform.
What awards has Razorpay won?
Razorpay has won awards like “Startup of the Year” in 2022 and “Best Digital Payment Facilitator” in 2018.
What is Turbo UPI?
Turbo UPI is a faster way for businesses to use UPI for payments, launched by Razorpay in partnership with Axis Bank and NPCI.
What is Razorpay’s mission?
Razorpay’s mission is to make online payments easy, secure, and affordable for businesses and customers.
