In the world of startups, it’s not often that you find an Indian company leading the pack. But that’s exactly what Razorpay has done in the payments sector.
Razorpay is an Indian startup worth emulating. It started as a project to solve the problem of online payments and has since grown into being a complete package for entrepreneurs looking to create their own eCommerce venture.
How Razorpay Became a Top Payment Gateway Startup in India
Razorpay is a payments company that was founded in 2014 by IIT Bombay and NIT Allahabad alumni, Harshil Mathur and Shashank Kumar. They were all working at different tech startups in Bangalore when they came up with the idea for Razorpay.
They wanted to create a payments company that was easy to use and could cater to the needs of businesses in India. And so, Razorpay was born.
The company has become a leader in the payments sector in India, and they have achieved this success through its innovative products and excellent customer service.
What exactly makes Razorpay so special?
In this startup story, we will take a closer look at the Razorpay startup story and find out how it became one of the top players in the payments industry.
How was Razorpay founded?
Shashank Bajpai and Harshil Mathur both studied Mechanical Engineering at NIT Allahabad and IIT Bombay respectively.
While they did not know each other during college, fate had something else planned for them. They met on a train journey – an incident that would go on to change their lives.
During the course of their conversation, they soon realized that they shared a common problem – how to accept payments online.
Surely there had to be an easy way out, right? They contemplated on this for some time until Shashank found himself at his friend’s startup incubator at IIT Bombay.
This, he believed could be the perfect platform for him to launch this new venture with Harshil and build something huge together.
The rest is now history! Razorpay was born out of its passion for solving problems using technology and providing opportunities to entrepreneurs looking forward to creating ventures online.
As they went along building Razorpay, they realized that payment gateways worldwide would charge merchants extremely high transaction fees (upwards of 4%) – something that Razorpay wanted to revolutionize by offering low fees, flexible payment options, and the ability for merchants across India to accept online payments.
Additionally, both founders believe in giving back not just monetarily but also through mentorship & guidance.
The company has set up a separate division called ‘Razorpay Foundation’ which offers free credit worth $100 along with training to students who are hungry for knowledge and want to become entrepreneurs one day.
Additionally, they have also worked towards building an ecosystem of their own – starting from launching other merchant services like UPI integration, Invoicing, etc., helping entrepreneurs bootstrap their ventures through financial support if needed while setting up events around the country to spread awareness about entrepreneurship!
A major step forward was taken by Razorpay in 2017 when it raised funding from American venture capital firm Sequoia Capital.
This move led them to become the first Indian payment gateway company to be funded by a marquee VC firm. Today, they are leading the way for other Indian companies that look to compete with the world!
It is still early days for Razorpay but the fact that they have come this far should already show how determined they are about succeeding in their journey and so are we! For more information on Razorpay, please visit https://www.razorpay.com/.
Business Model
The business model of Razorpay is simple – it charges lower transaction fees (1.99% for debit cards and 2.99% for credit cards) as compared to other payment gateways in the market, which makes it attractive to merchants.
Additionally, they have also built a host of other merchant services like UPI integration, Invoicing, etc. which help entrepreneurs bootstrap their ventures.
Funding
In April 2017, American venture capital firm Sequoia Capital invested $65 million in Razorpay. This was Sequoia Capital’s first investment in an Indian payment gateway startup and what made the deal more special is how it marked one of the rare instances where a top-tier VC fund put money into Indian startups after Tiger Global did so with Flipkart and OlaCabs several years ago.
Future Plans
Razorpay envisions itself as a complete package for all kinds of businesses to grow exponentially without having to worry about any technological hurdles along the way.
They currently have over 150 employees and plan on hiring more than 200 employees by 2020! The ambition and scale they dream of certainly spell exciting times ahead!
Razorpay revenue
Razorpay is currently seeing a monthly recurring revenue (MRR) of $2 million and plans to grow this to $10 million by the end of 2020. Since its inception, it has been able to see great success and is currently valued at around $140 million.
Razorpay is a perfect example of what can be achieved by sheer perseverance and determination. It was started as a project to solve a problem with online payments and today, it has become a complete package for entrepreneurs looking forward to creating an online venture.
Innovative solutions ensured that this startup not only became successful but also helped other businesses grow exponentially with ease! Razorpay is without a doubt an Indian startup worth emulating!
As a small business owner, you’re always looking for ways to save money and increase efficiency. One great way to do that is by using a payment processor like Razorpay.
Razorpay offers low processing fees and easy integration with a variety of eCommerce platforms. So what are you waiting for? Start using Razorpay today!
Innovative solutions ensured that this company not only became successful but also helped other businesses grow exponentially with ease!
As you are probably aware, Razorpay offers low processing fees and easy integration with your chosen eCommerce platform.
If you’re still unsure about using them, check out these benefits: lower transaction fees than most competitors; a convenient setup process; customer-friendly interface.
Get started today by signing up at https://www.razorpay.com. We hope we’ve provided enough information on how great it would be if more entrepreneurs choose to use Razorpay.
If you’ve found this startup story useful, please share it with your friends and colleagues – maybe they would want to know about how easy it is for entrepreneurs with small businesses to save money using a payment processor like Razorpay.
