Razorpay is an Indian fintech startup that offers payment processing solutions to businesses of all sizes. Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay has grown rapidly in the Indian market and has emerged as one of the leading payment gateway providers in the country. In this blog, we will take a closer look at Razorpay’s startup journey, from its inception to its current position in the market.
Harshil Mathur and Shashank Kumar, the founders of Razorpay, both come from humble backgrounds. Harshil hails from a small town in Rajasthan, while Shashank is from Bihar. Both of them met at the Indian Institute of Technology (IIT) Roorkee, where they were pursuing their engineering degrees.
After graduating, Harshil worked with Schlumberger, an oilfield services company, while Shashank joined Microsoft. However, they both had a keen interest in entrepreneurship and wanted to start their own venture.
In 2013, Harshil quit his job and started working on a business idea that he had been contemplating for a while. He wanted to start a payments company that would make online transactions simpler and more secure for businesses. Around the same time, Shashank, who was still working with Microsoft, also started working on a payments-related idea.
The two of them reconnected and decided to combine their ideas to create a unified platform that would offer a range of payment solutions to businesses. They set up their office in Bengaluru and started working on their startup, which they named Razorpay.
Razorpay’s early days were filled with challenges. When the founders started out, they didn’t have any funding or a team to support them. They had to do everything themselves, from coding the platform to marketing it to potential clients.
In the beginning, Razorpay’s focus was on building a payment gateway that would be simple and easy to use. They wanted to create a platform that would enable businesses to accept online payments quickly and securely, without the need for any technical expertise.
However, building a payment gateway from scratch is no easy task. Razorpay had to comply with numerous regulations and security standards, which added to the complexity of the project. The founders had to work long hours, often pulling all-nighters to get the platform up and running.
But despite the challenges, Razorpay managed to launch its payment gateway in 2014. The platform was an instant hit with small and medium-sized businesses, who found it easy to integrate with their existing websites and apps.
With its payment gateway gaining popularity, Razorpay started to grow rapidly. In 2015, the company raised its first round of funding from a group of angel investors, including Matrix Partners and Y Combinator. This funding helped Razorpay expand its team and invest in marketing to acquire more customers.
Over the next few years, Razorpay continued to grow at a breakneck pace. The company introduced new products and services, such as subscription billing and invoice management, to help businesses manage their payments more efficiently.
In 2018, Razorpay raised $20 million in a funding round led by Tiger Global and Y Combinator. This was a significant milestone for the company, as it gave them the resources to expand their operations and invest in research and development.
By 2019, Razorpay had become one of the leading payment gateway providers in India. The company processed over $10 billion in payments annually, and had more than 800,000 businesses using its platform.
Impact of COVID-19
The COVID-19 pandemic had a significant impact on Razorpay’s business, as it did for many other companies around the world. With businesses shut down and people staying at home, online payments became more important than ever before. As a result, Razorpay saw a surge in demand for its services during the pandemic.
The company responded quickly to the changing landscape, introducing new features to help businesses manage their payments during the crisis. For example, Razorpay launched a new service called “Payment Links,” which allowed businesses to create a payment link and send it to their customers via email, SMS, or social media. This made it easy for businesses to accept payments without the need for a website or app.
Razorpay also launched a new service called “Instant Refunds,” which allowed businesses to offer instant refunds to their customers. This was particularly useful for businesses that were struggling during the pandemic and needed to offer refunds quickly to maintain customer loyalty.
Despite the challenges of the pandemic, Razorpay continued to grow during this period. In July 2020, the company raised $100 million in a funding round led by GIC, Singapore’s sovereign wealth fund. This funding helped Razorpay expand its operations and invest in new products and services.
Expansion into International Markets
In 2021, Razorpay announced its expansion into international markets, starting with Southeast Asia. The company opened an office in Singapore and launched its payment gateway in the region.
This move was a significant milestone for Razorpay, as it marked the company’s entry into a new market outside of India. The company aims to replicate its success in India by offering simple and easy-to-use payment solutions to businesses in Southeast Asia.
Looking ahead, Razorpay has ambitious plans for the future. The company aims to become a one-stop-shop for all payment-related services, offering everything from payment gateway solutions to banking services.
Razorpay also plans to expand its international operations, with a focus on Southeast Asia and the Middle East. The company believes that there is a significant opportunity for growth in these regions, as more businesses adopt digital payments.
Razorpay’s startup journey is a testament to the power of perseverance and hard work. Despite facing numerous challenges in the early days, the founders remained focused on their goal and built a successful payment gateway that has become a household name in India.
Today, Razorpay is one of the leading payment gateway providers in the country, processing billions of dollars in transactions every year. The company’s success can be attributed to its focus on simplicity, security, and innovation, as well as its commitment to customer service.
With its expansion into international markets and plans to become a one-stop-shop for payment-related services, Razorpay is well-positioned to continue its growth trajectory and become a major player in the global fintech industry.
- Razorpay has established itself as a major player in the Indian fintech industry, thanks to its commitment to simplicity and innovation. The company’s focus on building easy-to-use payment solutions has helped it win over a large number of customers in a relatively short period of time. With its recent expansion into international markets, Razorpay is poised to become a leading global player in the fintech space.
- One of Razorpay’s strengths is its ability to adapt to changing market conditions. During the COVID-19 pandemic, the company quickly introduced new features to help businesses manage their payments more efficiently. This responsiveness helped Razorpay remain a key player in the market, even during a challenging period. Going forward, the company will likely continue to stay on the cutting edge of the fintech industry by developing new products and services that meet the evolving needs of its customers.
- One of the factors that sets Razorpay apart from its competitors is its commitment to customer service. The company has built a reputation for providing top-notch support to its customers, which has helped it establish a loyal customer base. By continuing to prioritize customer service and satisfaction, Razorpay is well-positioned to maintain its leadership position in the Indian fintech market for years to come.