Razorpay is a Bengaluru-based payments solutions startup. The startup provides payments solutions like payment disbursement, recurring payments, payment collection and invoice management to corporates. The startup announced yesterday (15/01/2018) that it has raised US $20 million (Rs. 130 crores) in Pre Series round of funding from its existing investors like Y Combinator, Tiger Global as well as Matrix Partners. Razorpay had in 2016 raised US $11.5 million (Rs. 74.75 crores) in seed round of funding from the Amjmn67ican payments giant, MasterCard. The funds will be used to scale up its services like payment disbursement, recurring payments, payment collection and invoice management. The startup generates revenue by collecting a certain amount of commission for each payment transaction made by corporates.
“Stripe and PayPal are likely to focus on global companies serving Indian markets. We are focused on domestic businesses”, CEO of Razorpay, Harshil Mathur said.
The above-mentioned payments services were introduced by Razorpay in January 2017. Since then, the startup’s revenue has grown exponentially to fifteen times its revenue in 2016. The number of merchants it has tie-ups with has also grown exponentially from 20,000 merchants in 2016 to 65,000 merchants by the end of 2017. Its current merchants include GoIbibo, Yatra, Zomato, Zoho, DSP Blackrock and Zerodha among others. The startup expects to have tie-ups with around 2 lakh merchants by the end of this year (2018). The majority of the startup’s merchants are from the food tech sector but the startup’s travel tech merchants contribute the majority of the startup’s revenue because they do high-value transactions. According to Economic Times, the startup may also experiment/venture into the digital lending sector this year (2018). The startup is also open to acquisitions in that sector.
“The company’s vision and execution over the last three years has shown tremendous results, especially for an India-focused SAAS company. With the online and digital payment space going through a massive transformation in India, their business is only going to grow further”, Anu Hariharan, a partner at Y Combinator’s Continuity Fund said.
Razorpay was founded in 2014 by Harshil Mathur and Shashank Kumar, both of whom are alumni of IIT Roorkee. It is definitely a promising startup to watch out for in 2018.