IIT alumni, Harshil and Shashank, launched the firm in March 2015. Razorpay aims to deliver a simple, affordable, and secure solution for online payment in India for startups and SMEs including schools, colleges and training centers. While Shashank worked for Microsoft, Harshil had a job at Schlumberger. Both of them quit their jobs to start the venture.
Razorpay has raised funding of $11.5 million led by Tiger Global, Matrix Partners, and other angel investors. The Angel investors include InMobi’s Founder and CEO- Naveen Tiwari, Freecharge Founder- Kunal Shah, Kunal Bahl, CEO of Snapdeal and others.
In this online payment gateway, MasterCard invested in the firm which is the first ever investment in an Indian Financial technology company by MasterCard. On it, Harshit says that due to this investment Razorpay will access to MasterCard’s knowledge base and expertise. This opportunity will help them use newer technology and tools, and international expansion in the next six to eight months. They will also help the company to build healthy relationships with the banks.
The focus of Razorpay involves the reduction of online transactions failure rates. They are working with MasterCard for a smooth integration and technology base. Their team is right now working on United Payments Interface (UPI), which will not only help them in launching new product lines that are in-progress but also, make automated and subscription based payments simpler. According to Harshil, they are working on more advanced payments modes, automated debits, and subscriptions. Also, they are going to expand the business into South East Asia and Middle Eastern countries.
The Bottom Line
The company has around 8000 merchants. Razorpay competitors’ list includes PayU, Citrus Pay, Instamojo, Juspay, and others. Among which Juspay from Accel Partners made Rs. 40 crore in seed funding.
On the future scope, Harshit says that with increased number of different players entering the market, new and better online payment solutions are required. RBI’s guidelines and regulations show the opportunities and growth in the space of this market.