BS BFSI Summit: Our company culture key to innovation, says Razorpay MD

We have 50 different teams, each pursuing separate goals, which allows us to innovate and launch new products, said Shashank Kumar, co-founder and managing director of Razorpay, at the BFSI Summit

In an interactive session titled “Building Resilience and Innovation at Razorpay at Scale,” Shashank Kumar, Co-founder and Managing Director of Razorpay, joined Business Standard’s editorial director Ashok K Bhattacharya on Wednesday (November 6). During this ‘fireside chat,’ Kumar discussed topics ranging from the early days of Razorpay to its growth strategy and the regulatory landscape impacting fintech.

 

Kumar’s journey into fintech began upon his return to India in 2014, coinciding with Narendra Modi’s assumption of the Prime Minister’s office. Inspired to transform digital payments, Kumar and his colleague launched Razorpay to bring a modern, mobile-friendly payment system to the rapidly evolving Indian market.

 

Inspiration and founding of Razorpay

 

Responding to Bhattacharya’s question on how the idea for Razorpay originated, Kumar shared his belief in the power of technology shifts. “Whenever technological shifts occur, new business opportunities arise,” he said, noting that he and his team were initially “naïve” but optimistic. “We didn’t know the kind of problems we would face, particularly with banks, but that helped us learn.”

 

Kumar also revealed that the name “Razorpay” was chosen to convey “innovation” and for practical reasons. “Most financial companies focus on building trust, but we wanted to emphasise innovation. Plus, the domain name was available,” he remarked.   

 

 

Driving growth through acquisitions

 

Over the past decade, Razorpay has acquired eight companies, a strategy Kumar attributes to the company’s “bottom-up” organisational culture. “We have 50 different teams, each pursuing separate goals, which allows us to innovate quickly and launch new products,” he explained.

 

He acknowledged that while acquisitions are straightforward, the challenge lies in integrating these companies into Razorpay’s ecosystem. Razorpay focuses on acquiring companies with similar values to ensure seamless collaboration. “We don’t claim a monopoly on innovation, but our approach allows us to support companies that might not otherwise access credit,” Kumar added.

 

Navigating setbacks and regulatory challenges

 

Addressing the regulatory environment, Kumar highlighted the balance between rapid growth and compliance. “As a start-up, we are here to solve customer problems. But as a regulator, the Reserve Bank of India (RBI) ensures ecosystem safety,” he said. Kumar noted that while Razorpay is not regulated like traditional banks, it has learned the importance of proactive compliance in recent years.

 

While Kumar acknowledged that excessive regulation could stifle innovation, he underscored its necessity in a developing market like India. “Without regulation, it would be the wild, wild west,” he said, emphasising the importance of preventive measures to maintain a safe financial ecosystem.

 

The path forward

 

Reflecting on Razorpay’s journey, Kumar credited the company’s resilience to its experiences over the years. “Setbacks teach valuable lessons, enabling survival,” he concluded. As Razorpay continues to expand, Kumar believes the company’s core values and culture will keep it at the forefront of India’s fintech sector.  Catch all special coverage of the Business Standard BFSI Summit 2024 here: BS BFSI Summit 2024