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Razorpay, the country's first converged payments solution company, will focus on scaling up its business banking product (Razorpay X) in the next two years, Harshil Mathur, Co-founder & CEO, has said.
Launched in December 2018, Razorpay X -- an AI driven API banking platform -- enables businesses to manage all forms of pay-outs (salary, vendor payments) and receivables on Razorpay itself, without having to go to a banking portal each time.
"As on date, we have 2 lakh merchants (overall) on board Razorpay. Our aspiration is to cover 40-50 per cent of the merchant base for our banking product in the next two years. As we continue to scale, we see ourselves having 3.5 lakh merchants next year,” Mathur told BusinessLine here.
The effort is to encourage merchants to not only do payments through Razorpay, but also bank on the same platform, he said.
This four-year-old start-up, backed by MasterCard and Tiger Global, was recently listed by CB Insights (a firm that tracks start-ups globally) among the top fifty private companies in the world, on the path to a $1-billion valuation.
Mathur, an alumnus of IIT Roorkee, sees Razorpay as a provider of a full stac ecosystem in financial services. "From being a payment acceptance solution provider, we now provide payments, banking and lending -- all on a single platform," he said.
Riding on the digitisation wave in the country and increased use of UPI, this fintech has seen its volumes grow a whopping 400 per cent in the last one year. There has especially been a bump-up in financial services, with 20 per cent of its merchant base doing financial services.
"We now see BFSI as growth driver for us. The other segments where we see growth are e-commerce and food tech, as we power payments for them," Mathur said.
Besides enabling people to buy government bonds through UPI, Razorpay is also working to expand the mutual fund players that could use its payment gateway services.
"We now work with four mutual fund houses, including some large ones. We want to expand it to 20-25 MFs this year," he added.
RAZORPAY CAPITAL
Razorpay Capital is a lending platform designed to support SMEs with instant and easy access to lenders. The transaction history of businesses with Razorpay is what will enable credit from lenders (NBFCs). It solves liquidity and cash flow challenges by offering quick settlements and collateral-free loans.
"We have processed lending of Rs 150 crore for 500 merchants in three months (since December 2018). We are also in talks with five more NBFCs to give our merchants more options," he said. Currently, Razorpay has two NBFCs at the back-end, to support lending to merchants.
OVERSEAS FORAY
Mathur said Razorpay is keen to expand in the overseas market and is eyeing Malaysia, Indonesia, Thailand and the Philippines for possible entry. "Our overseas foray is definitely on the radar. But we want to push lending and banking in India, and then take the whole suite overseas. Providing a whole suite has a lot more value than offering only a payment gateway," he said.
"One of the reasons we are not pushing ourselves or getting distracted by an overseas foray is because our first priority is to be the biggest in India. We see ourselves as a market leader in India in the next two years, going by the recent 400 per cent growth trend."
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