How Razorpay achieved monthly growth of 40-45% in COVID-Hit2020

Razorpay was one of the largest payment gateways in the Indian market, and like many online businesses, everything went online, so there was a huge opportunity during the pandemic. The company provides the infrastructure for businesses to accept, process and make payments online through websites or apps. It aims to be a hassle-free way to trade and manage money so that startups can focus on other aspects of growth.

Over the years, the company has expanded its service portfolio to allow businesses to quickly refund customers, automate and execute payroll, automate vendor invoice and TDS payments, collect recurring subscription payments, and unsecured. It is possible to provide business loans.

Recently, features such as address correction and automatic order confirmation have been introduced, making the logistics aspect of online business easier.

Today, the company states that more than 8 million companies are using Razorpay, adding that the COVID-19 digital revolution has achieved tremendous growth in 2020. Razorpay also said it processed $ 40 billion in total payments and increased revenues by 40-45% month-on-month throughout 2020.

Over the next few years, we plan to add depth by offering new products that provide a better experience and further simplify financial operations.

Expert opinion: Faisal Kawoosa, Chief Analyst at TechArc, recognizes the exponential growth of digital payments in the Indian market. “The digital payments segment is growing significantly for users across cities and segments. Today, there are several segments in the metro that combine online banking, cards and wallets to make more than 80% of their payments digitally. There is, “says Kawoosa.

But he believes digital payment providers need to address security aspects to reduce fraud. Kawoosa adds: “Currently, the biggest gap is scams using digital payment platforms. These wallets, in particular, prevent users who are increasingly using digital payments from being fooled or fooled by money. , Need to work on additional checks. ”

Gadgets 360 spoke with co-founder and CTO Shashank Kumar. Razorpay To know a little more about the company’s journey and future plans so far.

1. What did you do before you started Razorpay?

After graduating from the Indian Institute of Technology Roorkee, he worked as a software development engineer at Microsoft in Seattle, USA.

2. What made you start Razorpay? How did you and Hersill meet?

Co-founder Harshil and I studied together at IIT Roorkee and collaborated on many projects during college. After graduating, I moved to the United States to work with Microsoft, and Hersill continued to work with Schlumberger in the Middle East. We have been good friends since college, and we kept in touch and worked on many side projects.

In one such side project in 2014, we were building a crowdsourcing platform to collect online donations for the cause. At that time, I found that most online payment gateway solutions were very cumbersome to get started, especially for start-ups and small businesses. When I contacted several payment gateway companies, I was asked for past operational records, physical office presence, security deposits, and very high setup fees. Online reviews were bad, technical integration was clumsy, and the support provided by most payment gateways was terrible. The success rate, especially on mobile, was poor due to inefficient payment flows. Faced with such a bad experience, we decided to shift our focus to solving the problem of online payments.

Most payment platforms get APIs from banks. Then integrate with the bank and build more layers. Therefore, they all look the same. However, using Razorpay, we had to build the product first, while maintaining the banking integration as a black box. We talked about what the merchants want and what our customers want. We answered these questions and made products. That’s why Razorpay was founded in May 2014 as a payment gateway.

3. How was your first year in business? What are the important lessons from the early days?

Razorpay was founded on the market-specific need for a simple online payment solution for startups to receive money from their customers. We wanted to do everything we could to solve it. In 2014, it was a place no one had traveled, there was a lot to work on, we knew there would be a thousand challenges, but we really decided to travel that journey. Did.

Here are some of the lessons we are still trying to incorporate into our daily processes.

First, keep talking to your customers at every stage of business development. No matter what product you are trying to build or what problem you are trying to solve, we will discuss it with you to identify and resolve your needs.

Second, dedicate your resources only to the processes that bring you growth. There are many things companies need to think about early on, such as recruitment, marketing, and 100 other things. But the focus of all action needs to be growth. If you can achieve that, everything else will follow.

Today we are sitting on a great opportunity to influence not only India but the world. And when I say, believe me, we just scratched the surface, which means there’s more work in front of us than ever before. But we believe we are better prepared today, making our vision and the path we want to take in the coming years clearer.

And through all that, my greatest learning was resilience to keep moving forward.

4. How was it overcoming the unprecedented COVID-19 crisis?

None of us have ever faced this kind of pandemic in our lives, and it has influenced us like everyone else. In the first three months of the pandemic, revenue fell by 30%, morale was low, and employees felt uncertain. After the first three months, we began to observe great interest in digitizing finance from businesses, small businesses and large corporations across the country. Pandemics have facilitated the adoption of digital technology and created many native digital businesses.

This meant that there was a need in the market for intelligent payment and business banking products that could simplify the transfer of funds for startups so that they could focus their efforts on growing their business. Within a year, Razorpay processed $ 40 billion in total payments, with revenues up 40-45% month-on-month throughout 2020. Today, over 8 million companies are using Razorpay. The growth and uptake seen in our services over the past year.

5. In what year did Razorpay make significant progress? Tell us more about what happened that year.

2020 was undoubtedly a watershed year for us as we saw the tremendous growth of our business. After a 30% drop in the first three months of the pandemic, we began to see growth of 40-45% month-on-month. In just six months, we brought over a million small businesses to the Razarpay platform and introduced more digital native startups.

In October 2020, Razorpay’s valuation reached $ 1 billion, giving us the coveted unicorn status. And in just six months, in April 2021, our valuation tripled to $ 3 billion. Such rapid growth in such a short amount of time is unprecedented and made possible by all razor efforts. Today, Razorpay has grown from a payment gateway to one of India’s leading FinTech organizations for the overall length and breadth of a company’s money transfer journey.

6. What does the recent Zomato IPO mean for Indian start-ups?

Many of India’s early startups, including Zomato, have done a tremendous amount of work to encourage entrepreneurs to start up. When Flipkart raised $ 1 billion, it was unprecedented in India’s startup ecosystem. A similar case can be seen in Zomato’s IPO. This essentially strengthens people’s interest and trust in startups and their business models. This trust from the ecosystem is essential for Indian startups to thrive. I’m confident that in the next few years we’ll see more startups doing things they’ve never done before.

7. Is the Razorpay service available outside India? Tell us more about some of the other services you offer.

Currently, only Indian businesses and individuals / freelancers can use the Razorpay service, but it supports international payments in over 100 currencies. Razorpay is a full-stack financial services company that offers innovative solutions built on robust technology for payments of any business and the entire period of banking.

Overall, Razorpay has more than 25 different products that help businesses receive payments, make payments, borrow money, automate accounting and compliance, and use related financial services such as payroll, insurance, and fraud prevention. Provide. The service categories are as follows:

Payment gateway: Razorpay’s main service allows businesses to accept payments from India and international payments from over 100 currencies through a variety of payment methods. Under the Payment Gateway product suite, Razorpay offers more than seven products to customize and simplify the payment collection process. This includes payment links, checkout pages, payment buttons, subscriptions and more.

RazorpayX: A next-generation business finance platform designed to automate and simplify repetitive and time-consuming financial tasks. RazorpayX looks to the future for businesses and entrepreneurs, from facilitating daily payments, accounting and adjustments to helping businesses borrow unsecured loans, automate payroll processes and comply with the latest compliance standards. Provide a solution.

The platform integrates checking deposits (provided by a leading Indian bank) with Razorpay’s intelligent application layer to create a hassle-free and convenient business banking experience. Under RazorpayX, businesses also have access to additional services such as RazorpayX Payroll, group employee insurance via Plum, and access to capital through Razorpay Capital.

8. Has it been recently valued at $ 3 billion after the recent round of funding in April? How are you going to spend that money?

Our vision is to build FinTech’s central nervous system in India, and over the past seven years we have made steady progress to achieve this. We plan to invest heavily in developing new and innovative payment and business banking solutions that can simplify our business finance capabilities, especially as start-ups and SMEs are largely underserved.

9. Any advice you would like to share with future entrepreneurs?

Given the years of infrastructure development and the amount of resources, support and mentorship available, I think this is the perfect time to start your startup journey.

The next big opportunity is in Tiers 2, 3 and 4 towns with large-scale innovations that can change people’s lives. There are many issues that need to be resolved. If anyone has reached the limit of whether to start up, take the plunge and do your best. Please do not give up.

10. What are your big plans for the future? What new features and initiatives can you expect?

As mentioned earlier, Razorpay is working on building the central nervous system of FinTech in India. We have made some progress towards that journey. Recent initiatives in the banking and lending sector through RazorpayX are some very unique challenges for businesses to access credit, manage funds, and help businesses grow despite financially difficult years. Helped to solve the problem.

This year and next year, we plan to further double our efforts in these two areas to meet growing demand and enable more and more traditional businesses to trade online. We plan to broaden our market share and penetration, provide a better experience, simplify our financial operations, and add new products that will significantly contribute to the growth of our partner businesses. More than 8 million companies are currently using Razarpay and we aim to significantly increase this number by the end of this year.

11. What are your employee strengths? Are you currently using Razorpay?

Razorpay currently employs more than 1,750 people and is actively hiring in a variety of roles. How Razorpay achieved monthly growth of 40-45% in COVID-Hit2020

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