Fintech Unicorn Razorpay has registered 3X growth in payment volumes over the past 12 months, thanks to the thousands of SMBs, especially from Tier 2 & 3 cities, who chose the payment gateway as they went online for the first
This led to large scale adoption of digital payments across the country, as Razorpay witnessed over 54% of digital transaction volume coming from SMBs in Tier-2 & 3 cities alone. Online transactions in cities like Ahmedabad and Jaipur grew by about 50% within a week’s time.
The full-stack financial services company aims to further accelerate this digital revolution, by enabling 5 million new Indian SMBs to adopt digital payments in the next 12 months, currently the company serves over 5 million businesses. Razorpay also plans to invest heavily in strengthening the security and fraud analytics infrastructure, along with building hyperlocal solutions to provide a seamless and safe payment experience for all.
Razorpay also helped provide access to credit to thousands of SMBs through its neo-banking platform, RazorpayX. The company has been disbursing credit of upwards of Rs 250 crore per month, which has helped several entrepreneurs get access to working capital. The company aims to scale this up to Rs 500 crore per month as it looks to expand its lending offering.
Razorpay CEO and Co-founder Harshil Mathur said, “One of the significant overnight changes we saw in how people were approaching the initial lockdown period of isolation and uncertainty in 2020 was in their digital spending behaviours, especially people from Tier 2 & 3 cities.”
“Online shopping became the new normal but it left the offline businesses grappling with fear of losing their business. Not only the offline businesses but some of the online businesses in the essentials category, bill payments, education
among others were also struggling to keep up with demand and ensure business continuity,” he added.
Razorpay build customised solutions to help struggling businesses adapt to the new normal by providing flexible easy-to-integrate payment and banking solutions. Some of these products included Same Day settlements allowing businesses to
receive funds in just a few hours instead of the usual 3-5 working days settlement period.
Other products launched to help businesses improve their cash flows and manage operational expenses better included Working Capital loans, Instant Refunds, UPI AutoPay and partnerships with stalwarts like Visa & PayPal.
Recently, Razorpay announced a string of new products aimed at empowering the next phase of digital growth for Small Businesses in India. The company launched Vernacular Language Support in 7 languages, India’s first B2B app store, “Razorpay Trusted Badge” to help improve conversions for new businesses, and Group Health Insurance for companies with as less as two employees.
The Fintech unicorn has also been steadily growing its neobanking arm, RazorpayX which serves more than 10,000 businesses today and is the leading B2B neobank in the country. In the last six months, Razorpay has witnessed 40% month-on-month growth. The company was recently crowned one of the leading FinTech Unicorns with the Series-D fundraise of $100 million.
Razorpay currently powers payments for over 5 million businesses including the likes of Facebook, Airtel, BookMyShow, Ola, Zomato, Swiggy, Cred, ICICI Prudential among others and is all set to reach 10 Million businesses by 2021.