Table of Contents
Razorpay-success-story- Bio, facts, Net worth, Business, Income, Growth, Investments, Challenges Faced. Personal life.
Although the world was unprepared for smartphones and the internet, they also heralded a world full of cutting-edge technologies that would increase availability and efficiency for all inhabitants. Thus, the development of cutting-edge technology and software has contributed to opening doors to countless chances for all of the world's booming industries. Among the sectors where these advancements have brought about some significant alterations is the banking and payments business. Among the many benefits that the newer technology has brought forth are digital or online payments. The banks and finance sector, as well as retailers and the general public worldwide, are all benefiting from the modern, expanding payment methods and instantaneous online payments.
In the same industry, Shashank Kumar and Harshil Mathur created Razorpay in 2014 with the goal of revolutionizing online payment systems by offering clear, developer-friendly APIs with hassle-free user integration.
With its suite of products, Razorpay is an Indian online payment solution that enables companies to receive, process, and distribute payments. It facilitates the use of all contemporary payment methods by commercial entities, including net banking, credit and debit cards, UPI, and other widely used wallets in the nation, such as JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp. Web and mobile applications may both integrate Razorpay's online payment systems.
Razorpay: Overview and Operation
As previously indicated, Razorpay facilitates online payments by offering developer-friendly APIs that are supported by a seamless integration procedure. In addition, Razorpay provides several plugins and integration suites for all major backend technologies and e-commerce platforms, in addition to a full payment management dashboard. Razorpay is enhancing online payment systems for startups and other businesses, as well as the user experience, with its effective tools.
Razorpay introduced four products in September 2017: Route, Smart Collect, Subscriptions, and Invoices. These tools help organizations handle the collection, reconciliation, and disbursement of money.
At the same time, Razorpay also declared that Razorpay Capital, a subsidiary company, will be joining the SME financing market. It is a financing platform that is aimed to provide Small and Medium Enterprises with rapid and easy access to lenders. The objective of this effort is to address issues related to cash flow and liquidity by offering these businesses loans without collateral and prompt payments. Since its September 2018 introduction, the platform's beta version has disbursed $30 million in loans.
Additionally, Razorpay expanded the services it offers with two new features. These are referred to as "Batch Uploads" and "Partial payments," respectively.
Partial Payments: This feature enables end customers to pay in installments rather than the full amount all at once against a certain order ID.
Batch Uploads: Rather than generating individual links by uploading a single file with collect order details, this feature enables business entities to generate and process links in bulk.
The AI-driven API banking platform Razorpay X (Comprehensive Banking Platform) is poised to revolutionize the way businesses handle money transfers. Businesses can handle receivables on Razorpay and all types of pay-outs (salary, vendor payments via NEFT, RTGS, IMPS, and UPI) with the account number that is provided.
Businesses can now do everything and more with Razorpay—posing as a unique solution—than they could have done existentially with banks up until this point.
The current online payment system has undergone a major improvement recently. More new features have also been added to Razorpay's checkout. In essence, these are referred to be Native OTP, Personalization, and Affordability.
With over 67% of the 2,100 fintech businesses that have been established in the last five years, the Indian fintech market has experienced tremendous growth during the last ten years, earning it the title of fastest-growing fintech industry in the world.
As to the Razorpay Team, the Indian fintech market will touch Rs 6.2 lakh crore by 2025. Furthermore, the company's digital payments segment has experienced an acceleration due to COVID-19.
IIT Roorkee alums Shashank Kumar and Harshil Mathur co-founded Razorpay.
The Razorpay co-founder and CEO Alumnus Harshil Mathur holds a BTech in Technology from IIT Roorkee. Mathur went on to become a member of the W15 batch at Y-Combinator in 2015. At Schlumberger, Harshil began his professional career as a wireline field engineer. Following his brief employment there, Mathur made the decision to launch Razorpay alongside Shashank Kumar in 2014.
At Razorpay, Shashank Kumar serves as both the CTO and co-founder. Prior to enrolling at Y-Combinator in 2015, he had previously studied computer science at IIT Roorkee, where he earned his BTech. Kumar completed a three-month internship as a research intern in the University of Minnesota's Department of Computer Science and Engineering before beginning a new internship at Microsoft as a Software Development Engineer. After completing his three-month internship at Microsoft, Kumar went on to become a Vice President at SDS Labs prior to starting work there as a Software Development Engineer. After less than two years of employment with the industry titan in software, he made the decision to leave and co-found Razorpay.
The intricacy of India's online payment system dawned on the co-founders as they worked on the crowdfunding page, giving rise to the idea for this firm. Furthermore, they determined that payment methods based in the United States are not the best fit for Indian markets, particularly when credit card saturation is considered. After this, they took a different approach to addressing India's payment issue, where technology adoption was exceedingly difficult. In addition, there was a significant amount of payment failures and opaque pricing with the previous published pricing.
According to our findings, the majority of online payment gateway solutions are extremely difficult to set up, particularly for start-ups and small and medium-sized businesses. We were asked for our previous business documents, the existence of physical offices, security deposits, and extremely costly set-up fees when we contacted a few payment gateway companies. The majority of Indian payment gateways' online evaluations, according to Mathur, validated similar negative experiences.
Thus, they set out to create a user-friendly, simple-to-integrate online payment gateway. Upon completing preliminary market research to confirm the idea's viability and receiving encouraging feedback from prospective clients, the co-founders made the decision to dedicate themselves full-time to the Razorpay project.
This project started in 2015 as a part of Y Combinator's startup program's winter batch in Jaipur. After being sponsored by Startup Oasis in Jaipur, set up jointly by the Rajasthan Industrial Investment Corporation (RIICO) and IIM Ahmedabad's Centre for Innovation Incubation and Entrepreneurship (CIIE), both of these co-founders eventually left their respective professions at Microsoft and Schlumberger. In addition, Razorpay is thought to be the second firm with an emphasis on India to be selected by the Y-Combinator program, after ClearTax.
In line with its goals, Razorpay makes sure that "businesses find it easy to accept and receive payments."
Razorpay, founded by alumnus of IIT Roorkee, aims to transform internet enterprises' money handling. Clean, developer-friendly APIs and hassle-free integration are how the company hopes to achieve this goal. It provides businesses, schools, eCommerce, and other organizations with a quick, inexpensive, and safe way to receive and process payments online. In addition, Razorpay assists its customers in obtaining working capital loans and owning a current account that is completely operational.
Razorpay now uses the phrase #PoweringDisruptors.
Razorpay levies a 2% fee on all subscription collecting transactions processed through their gateway. The company's revenue streams have expanded since the release of Razorpay 2.0. It now accounts for roughly 30% of Razorpay's entire revenue production. This online payment platform wants to raise its average product adoption from one to two. The team anticipates that RazorpayX and Razorpay Capital will contribute close to 35% of overall business sales.