Razorpay, 3rd Largest Fintech Startup In India

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Razorpay has become one of the largest players in Payment Gateway and neo banking services.

With the increasing digitization in India, the need for the services like Payment Gateway, Easy sanction of loans, and Automatic Payment has increased, and this what Razorpay offers to small and larges businesses and startups

After reading this article you will get to know about the minds behind razorpay, how the idea came, services offered by them, their business model, valuation, prominent customers, future plans and their competitors.

Table of Content

How Did Razorpay Start?

Razorpay Founders Harshil Mathur and Shashank Kumar

Razorpay was launched in 2014 by Harshil Mathur and Shashank Kumar.

Harshil Mathur and Shashank Kumar both have studied at IIT Roorkee. Although Shashank was Mathur’s senior, they became very good friends with each other

The idea hit them when they faced problems while creating a crowd-funding platform in their college days, that is when they realized how difficult it is to integrate a payment gateway to the portal for startups.

They decided to build a Payment Gateway Platform for startups that can be easily integrated without much hassle and unnecessary documentation.

Harshil is fond of Car racing and that is the reason he is in love with the speed. That is why he focused on higher speed and higher traction to come on the top.

Furthermore, they started finding sectors where cash is still dominating so that they could find a solution to encourage a cashless ecosystem, that is why they launched platforms like Razorpay for Education, Razorpay Payment Pages, etc.  

Razorpay’s Business Model and Valuation

Razorpay mainly provides Payment Gateway service but now it has entered into neo banking and providing working capital loans as well.

Neo Banking means digital banks that do not have a physical presence at a specific location instead it is online where all the works from KYC, opening an Account to automatic payment, all is done through digital mode just with few clicks.

They have 3 products:

  1. Razorpay Payments
  2. RazorpayX
  3. RazorPay Capital

Razorpay Payment enables Corporates, Startups, Small and Medium Size Business, and freelancers to accept payments through various modes by including a payment gateway on their website or by building a custom web page to collect payments. It can also help in building a link that can be sent to Mails or SMS for easy collection.

RazorPayX is claimed to be the one-stop solution for all the banking requirements of businesses. By RazorpayX you can automate all your payments like payments to vendors, employees or TDS, and other regulatory payments, etc.

By opening the current account of Razorpay you can integrate your accounting system with it and can get more insightful financial reporting as well.

Razorpay also finances small and medium-sized businesses and startups via Razorpay Capital. You can easily get working capital loans without much hassle.

Funding and Valuation

The company has raised a total of 366.5 million till now and is valued at $3 billion. In the year 2020, it got the Unicorn status by raising funding $100 million.

Currently, it is the 3rd largest fintech startup in India and has raised funding in a total of 7 rounds

Its major customer base is from India but with the latest funding raised by them, Razorpay is planning to spread its operation in other parts of South East Asia too including the Philippines, Vietnam, Indonesia, and Malaysia.

Harshil Mathur expects that its neo banking platform, RazorpayX, and Razorpay Capital will contribute around 50% of their total revenue.

Customers Base

They have served over 50,00,000 businesses. In FY2020 Razorpay opened its services for freelancers as well that has enhanced its adaptability. 

It has also served startups like OYO, Swiggy, Dunzo, Cashify, Ather, and large corporations like Airtel and state-run IRCTC, etc. that increase its credibility.

Razorpay’s Competitors

Its competitor includes 

  • Amazon Pay
  • PayPal, Stripe
  • Instamojo
  • CashFree
  • PayUMoneyMobikwik 


 Covid has worked as a blessing in disguise for a few industries and Fintech is one of them.

With the increasing usage of digital payment modes, Razorpay has also grown manyfold. More and more businesses are now shifting from offline to online and with the increasing transition, the opportunity for growth for Razorpay is also increasing.

Investors see good potential in the industry and Razorpay with its advanced technology is looking to dominate the neo banking and payment gateway segment.

Let us know what do you think about the future growth of the Fintech Industry and Razorpay?

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Hey I am Vaibhav, a CA student and a startup enthusiast who write about startups and on financial topics

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