Cross-border payments make 15% of Razorpay’s revenue: CBO Rahul Kothari

While we have different business units for enterprises and SMBs, we always think about the SMB first. I think there’s a proper business rationale for it as well. We have grown along with our customers and lot of these small merchants and start-ups start early with us when they are very small. As their business grow multifold, our business with them also grow on a similar scale. So I think both from our DNA and business perspective, it makes a lot of sense. 

Moreover, I think it’s relatively easier to make product and tech innovations in SME segment. For example, if I create something transformational, it’s easier to convince SMEs to adopt it, rather than have enterprises who run on legacy systems adopt it. So I think in general, we have worked very well with SMEs and going ahead SMEs continue to be a major focus area. 

We are now focused on building international payments or cross-border payments for SMEs. We started putting a lot of focus on this about one and a half years back and it has already become 15 per cent of our business. We are building a lot of things which helps SMEs to accept payments from from customers in foreign countries and also accept payments in the specific payment modes of those countries.  

So far, we have enabled payment modes for Europe, Australia and New Zealand. Few things are ongoing in America and then we will probably look at other countries. There is also a lot of regulatory compliance which comes along with cross-border trade. So we have built products which makes it far easier for merchants to get all the necessary regulatory filings. 

So far, payments have been our major acquisition engine and we have cross-sold products from neobanking and Razorpay capital to these acquired merchants. The growth has been significant, while Razorpay overall has millions of merchants. Neobanking has close to 30,000 merchants and we have reached that scale over a period of last two-and-a-half years. 

Now we are at the stage, where these businesses are acquiring their own merchants as well. So now all the three business lines are growing significantly. Capital is growing around 20 to 30 per cent every month and neobanking is growing around 10x every year. Payments business has been growing around 200-300 per cent every year and is expected it to grow at the same pace this year.

Currently, we are crossing close to $70 billion in transacting volume. In terms of volumes, this should go up to over $90 billion by this financial year. In terms of the number of merchants, we expect it to be close to 2x of where we are right now. While a lot of growth will continue to happen in the domestic payments business, I expect at least 3x to 4x growth happening in our neobanking and capital business.