Razorpay, India's first converged payment solutions company, marched towards diversifying its product offering for banking services and lending.
Progressing in the journey that started a year back with Razorpay 2.0 of developing solutions beyond payment acceptance, the company today announced the launch of three new financial products and an exclusive community for Indian start-ups to thrive.
Razorpay X (Business Banking), Razorpay Capital and Razorpay Flash Checkout along with The X Club are the new additions to the existing Razorpay 2.0 product suite of payment gateway, subscriptions, disbursements, B2B collections and GST enabled invoices. The company made this announcement at FTX, its flagship conference that brought together some of the sharpest minds in the fintech ecosystem.
Last year, while around 4% of the country's GDP was derived from digital products and services using digital technologies, it is estimated that within the next four years, nearly 60% of India's GDP will have a strong connection to the digital transformation trends.
It is not a far dream to achieve this if companies are determined to build new solutions to improve the Indian financial infrastructure. Over the last four years, Razorpay has been actively involved in solving problems towards strengthening the ecosystem. With a strong understanding of the Indian market, the company has been successful in launching a new product suite that will ease businesses of their worry about managing concerns around money movement.
Razorpay Capital - A lending platform, Razorpay Capital is designed to support SMEs with instant and easy access to lenders. The transaction history of businesses with Razorpay is what will enable the credit from lenders. It solves for liquidity and cash-flow challenges, by offering quick settlements and collateral free loans. Based on the business's transaction history with Razorpay, the company facilitates credit.
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A unique feature, 'Early Settlements' helps reduce the average settlement period of three days to within few hours, from the time of transaction. Launched in beta stage in September 2018, this lending product is scaling rapidly and has already disbursed working capital at a $30 mn annualised lending disbursal rate so far and the company targets an annualised rate of $100 Mn of loan disbursals by March 2019.
Razorpay X (Comprehensive Banking Platform) - An AI driven API banking platform, this product is set to fundamentally transform how businesses move money. The account number provided enables businesses to manage all forms of payouts (salary, vendor payments through NEFT, RTGS, IMPS, UPI) and receivables on Razorpay itself. Unlike a banking account which is mostly transaction in function, Razorpay X is the unbundled banking service - it also provides real-time business insights such as how much runway is left or what's the annual revenue run rate. A unique solution, businesses can now do everything and more with Razorpay that they were existentially doing with banks till now.
Razorpay Flash Checkout - A significant enhancement to the existing payment gateway product, Razorpay launched three new features to it's checkout - Affordability, Personalisation and Native OTP
The Affordability feature enables all forms of consumer lending such as PayLater (GetSimpl, Early Salary, Zest Money) and Cardless EMI to create a seamless experience for users
The Personalisation feature creates a checkout experience that is personalised for each individual across businesses. Now one need not search for preferred payment method (saved card or wallet) or type VPA (Virtual Payment Address) for UPI transactions
The Native OTP feature supported by all banks, ensures no-redirects and no interruptions as the user does not have to switch screen to enter OTP but the OTP is accepted right in the same screen
With these features, businesses can gain upto a 15% increase in their conversion rates.
Along with these new products, Razorpay also announced the launch of The X Club, a first of its kind startup community in India that is dedicated to nurturing and empowering aspiring disruptors. Through Razorpay community initiatives like training sessions and bootcamps from India's leading experts and a diverse ecosystem of investors (including the likes of YCombinator) to help raise capital and access to networking community of entrepreneurs and business partners - The X Club supports startups in their entrepreneurial journey and makes it less stressful and more successful.
Excited to launch products designed to transform the Indian financial ecosystem, Harshil Mathur, CEO & Co-founder of Razorpay said, "Fintech in India has evolved much beyond just accepting payments and being transactional to now being transformational and impactful.
Even at Razorpay, we have evolved from being a single product company to a multi-product company. Today, we're the fastest growing company to have achieved billion dollar annualized TPV (Total payment Volume), as of December 2017. We wouldn't have been able to witness this growth if not for the trust our business partners rested in us.
Our one key mission is while our clients disrupt the Indian economy with new ideas, products, experiences and new jobs - we want to power their financial systems. We really don't want our business partners to worry about their financial processes, how to accept payments, how to get a loan, how to disburse money, among other concerns - leave that to us."
He added, "In the next five years, India is really going to be a continuous story about digital growth and we believe products like these will create a significant impact on every vertical. We desire to enhance the payment experiences for 300 million end consumers by 2020."
Shashank Kumar, CTO & Co-founder, Razorpay added, "To be relevant in the current world and for our customers, it is very important for us to evolve and be ready for tomorrow. The success of Razorpay 2.0 was a testimony and an opportunity to continue developing new products that manage the who, what, when and where of any transaction, from acceptance to disbursement to settlements, and more. Each of the five products launched last year grew to over 5x in the last one year.
Today, over 60% of enterprise businesses use more than one product. Our products from today's launch is our commitment to not just limit financial systems to be seamless but make them intelligent with real-time insights. Products like Razorpay X (Business Banking) is an unbundling banking service - everything that a business could do with the bank, they can now do that and more with Razorpay. We have been on an exciting journey of strengthening the Indian fintech ecosystem and these new launches take us a step closer to empowering businesses and making them more agile."
The Razorpay 2.0 product suite launched last year now contributes to 30% of Razorpay's revenue. Razorpay expects the upgraded Razorpay 2.0 product suite launched today to contribute to 50% by end of 2019.
Razorpay has been charting exponential growth since their inception. The company currently powers digital payments for more than 170,000 small & large businesses. Recent client wins include Aditya Birla Capital, NSE and Vogue India, among others. Razorpay has clocked in a healthy growth rate of 15-20% month-on-month on the merchant count and is geared up to increase this to 3,00,000 by 2019. The Converged payments solution company expects a 5x growth in its revenue by the end of the next fiscal year.
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