History
Razorpay was founded in 2014 by Shashank Kumar and Harshil Mathur, who met while studying at IIT Roorkee. Initially, they explored the idea of a crowdfunding platform, but shifted focus after identifying difficulties faced by small and medium businesses in processing online payments. The company was established to provide a payment gateway that could be easily integrated into websites by startups and e-commerce firms. [12] [13]
In 2015, Razorpay joined the Y Combinator winter 2015 (W15) cohort, where it received $120,000 in seed funding. [14] [15] [16] Later that year, it raised $2.5 million in seed funding, followed by a $9 million Series A round led by Tiger Global Management and Matrix Partners India. [17] [18] During this period, Razorpay began collaborating with Mastercard, including participation in the Mastercard Start Path programme and Mastercard invested to support payment infrastructure development. [19] [20] It raised $20 million in Series B funding the next year. [21] [22]
In 2019, Razorpay secured $75 million in a Series C round from Sequoia Capital India, Ribbit Capital, Y Combinator, and Tiger Global. [23] [24] [25] The same year, it acquired Bengaluru-based Thirdwatch, an artificial intelligence-powered fraud detection company. [26] During the COVID-19 pandemic in 2020, Razorpay introduced Cash Advance, partnered with NPCI to launch UPI autopay [27] [28] , acquired Opfin, and raised $100 million in a Series D round led by GIC and Sequoia India, attaining unicorn status. [29] [30] [31]
In 2021, Razorpay entered into a partnership with Mastercard to combine Mastercard's digital banking solutions with Razorpay's payment infrastructure. The collaboration was intended to support MSMEs in adopting digital payment systems. [32] [33] The same year, it acquired TERA Finlabs, a Bengaluru-based AI-driven risk management and credit underwriting firm, to strengthen its digital lending and credit capabilities for MSMEs. The same year raised $375 million in subsequent rounds. [34]
In 2022, Razorpay acquired Pune-based IZealiant Technologies, a provider of mobile banking and digital transaction software for financial institutions. [35] During the same year, Razorpay acquired point-of-sale solutions provider Ezetap, marking its entry into in-store payment processing. [36] , and Bengaluru-based PoshVine to add loyalty and rewards management capabilities to its offerings. [37] By the time Razorpay had expanded its offerings beyond payment gateways to include business banking through RazorpayX, payroll management, and credit solutions for SMEs. [38]
In 2023, Razorpay acquired BillMe, a digital invoicing and customer engagement platform. [39] [40] Between 2022 and 2023, the company raised additional funding, bringing its total capital raised to $742 million. [41]
The company completed its reverse flip in May 2025, redomiciling its parent entity from the United States to India. [42] [43] According to company statements, the move was made in preparation for a planned initial public offering. [44] [45] In the same year, it acquired a majority stake in Bengaluru-based rewards-focused UPI payments application POP for $30 million [46] [47] and expanded international operations by launching services in Singapore, following its earlier entry into Malaysia after acquisition of Curlec. [48] [49]
In 2025, Razorpay announced a partnership with NPCI and OpenAI to enable UPI-based payment initiation through conversational interfaces, allowing users to initiate transactions via supported AI platforms, a early integrations of AI-driven payment experiences in India. [50] [51] In December 2025 and January 2026, Razorpay secured key regulatory approvals from the Reserve Bank of India (RBI), including authorization as an online payment aggregator, a cross-border payment aggregator (PA-CB) [52] , and a physical point-of-sale payment aggregator (PA-P). [53] [54]
Products and services
Razorpay POS
Razorpay POS provides point-of-sale solutions for offline merchants and retail businesses. Following the acquisition of Ezetap in 2022, the company expanded into in-store payment processing, enabling businesses to accept card-based and digital payments through physical terminals and mobile-based POS devices. The offering integrates with Razorpay’s broader payment infrastructure to support both online and offline transactions.
RazorpayX
RazorpayX is the company’s business banking platform designed for startups and small and medium-sized enterprises (SMEs). It offers services such as current accounts, automated payouts, vendor payments, payroll processing, and financial reporting tools. RazorpayX integrates with the company’s payment gateway to facilitate end-to-end money movement and operational banking services for businesses.
Razorpay Agentic Payments
Razorpay Agentic Payments refers to conversational payment capabilities developed in partnership with the National Payments Corporation of India (NPCI) and OpenAI. Introduced in 2025, the initiative enables users to initiate UPI-based transactions through conversational interfaces on platforms such as ChatGPT. The integration represents an early implementation of artificial intelligence-assisted payment initiation within India’s digital payments ecosystem.
Razorpay Capital
Razorpay Capital is the company’s lending platform that provides credit and working capital solutions to small and medium-sized businesses. The service offers short-term loans and cash advances based on transaction data and business performance metrics. The platform’s underwriting capabilities were expanded following the acquisition of TERA Finlabs, which specializes in risk management and credit assessment technologies.
UPI Autopay
Razorpay supports UPI Autopay, a recurring payment feature developed in collaboration with NPCI. The service enables businesses to collect subscription-based and periodic payments through UPI mandates. UPI Autopay is used for applications such as subscription services, loan repayments, insurance premiums, and utility payments, allowing customers to authorize automatic debits at predefined intervals.
Razorpay International Payments
Razorpay International Payments enables businesses to accept cross-border transactions from customers outside India. The service supports international cards and foreign currency payments. Following its acquisition of Malaysia-based Curlec and expansion into Singapore, Razorpay extended its recurring and cross-border payment capabilities to selected Southeast Asian markets.
Controversies
Alt News Donor Data Sharing
In July 2022, Razorpay deactivated donation payment links associated with the fact-checking website Alt News after receiving a request from the Delhi Police. Razorpay stated that it was legally obligated to comply with the order. [55] [56] The company provided transaction details to law enforcement, stating that it was legally required to comply with the order. The incident drew criticism from digital rights organizations, which raised concerns about donor privacy and the scope of data shared. [57] [58]
Security incident and fund loss
In May 2022, Razorpay reported a security incident in which unauthorized actors exploited vulnerabilities in certain merchant integrations, resulting in the manipulation of failed transaction authorizations. Approximately ₹7.3 crore was reported lost over a three-month period [59] [60] The company stated that the issue was linked to gaps in legacy merchant implementations rather than its core payment infrastructure. Razorpay said it implemented corrective measures and initiated recovery processes following the discovery of the incident. [61] [62] [63]
RBI onboarding restrictions
In December 2022, the Reserve Bank of India (RBI) directed Razorpay to temporarily halt onboarding new online merchants pending the grant of a final payment aggregator (PA) license under the central bank’s regulatory framework. [64] [65] Razorpay subsequently received the final payment aggregator license in December 2023, after which onboarding activities resumed. [66] [67]
Razorpay has been subject to scrutiny by India’s Enforcement Directorate (ED) in connection with investigations into alleged illegal lending operations linked to certain loan applications and the HPZ Token scheme. The ED alleged that payment platforms, including Razorpay, facilitated the transfer of funds associated with alleged proceeds of crime. Razorpay stated that it complied with applicable know-your-customer (KYC) and due diligence requirements. [68] [69]
In March 2024, the Karnataka High Court quashed criminal proceedings against Razorpay in one of the cases, observing that there was no evidence that the company knowingly assisted in money laundering activities or had intent to commit an offense. [70] [71] [72]
₹3,783 crore (US$450 million) (FY25) [1] [2] 
