Razorpay

Last updated
Razorpay
TypePrivately held company
Industry
  • Fintech
  • Payments Service Provider
Founded2014
Founder
  • Shashank Kumar
  • Harshil Mathur
Headquarters
Bangalore
,
India
Website razorpay.com

Razorpay is an India-based, fintech company that provides payment gateway services to vendors, merchants, and e-commerce platforms. [1] It is an online system that is designed to handle end-to-end payments that can also be integrated with different websites and apps. [2] The company was founded by IIT Roorkee alumni Shashank Kumar and Harshil Mathur in 2014. It is headquartered in Bangalore, India. [3]

Contents

History

In 2014, Shashank Kumar and Harshil Mathur met at IIT Roorkee when the duo decided to work on a crowdfunding platform. However, they realized that online payment was a problem for SMBs and SMEs, especially e-commerce companies. Therefore, they formed Razorpay to solve this problem. [3] [4] The idea of Razorpay was to bring a payment gateway for startups who can easily integrate this system into their websites.

In 2020, due to the COVID-19 pandemic, many small businesses suffered a huge loss and cash flow was also highly affected. To solve this problem, Razorpay announced Cash Advance, a collateral-free line of credit for rescuing MSMEs from uncertain conditions. [5] Shashank Kumar said in an interview that this service was supposed to help their partner businesses to come out of the crisis and help them in these unpredictable times. [6] As per a report by Business Standard, Razorpay and National Payment Corporation of India (NPCI) partnered to launch a recurring payment system called UPI Autopay. It made payment easier for consumers and helped them take more control over it. Prior to this, the debit card was the only mode of automated payments but the experience was not quite good. [7] Razorpay was ranked in 6th position in LinkedIn’s top 10 Startups list. [7]

In 2021, Razorpay and Mastercard joined hands to provide digital payment support to MSMEs. Both companies made a strategic partnership in which Mastercard's digital banking solutions were combined with Razorpay's payment capabilities. The partnership is supposed to help micro, small and medium businesses to keep their operations running through digitization and prepare them for the future beyond cash. [8] [9] [10] [11]

Funding

In 2015, Razorpay participated in the Y Combinator W15 cohort where they received a funding of $120,000 and a 3-month accelerated support and mentoring from Y Combinator's mentors and investors. [12] [13] After this they received seed funding of $2.6 million in funding in Y Combinator's seed funding round on March 23, 2015. The investors who contributed to the total investments included Soma Capital, Matrix Partners India, Tikhon Bernstam, Sandeep Tandon, Rohit Bansal, Ram Shriram, Punit Soni, Naveen Tewari, and Michael Sutcliff. [14] [15] Razorpay also completed their Series A funding in the same year on October 27, 2015, with a total of $9 million from Tiger Global Management and Matrix Partners India. [16]

In 2016, they completed the venture funding round with a total of $100,00 in funding from Mastercard. Following that, Razorpay picked up the Series B funding worth $20 million from Y Combinator, Matrix Partners, and Tiger Global Management. [17] [18]

On June 18, 2019, Razorpay raised $75 million in a Series C funding round from Sequoia Capital India, Ribbit Capital, Y Combinator, and Tiger Global Management. [19] [20] [21]

In 2020, Razorpay completed its Series D funding and successfully became a unicorn that raised $100 million in funding. The investment round was led by Singapore's GIC and Sequoia India, along with Ribbit Capital, Tiger Global Management, Y Combinator, and Matrix Partners. [22] [23] [24]

After becoming a unicorn, Razorpay completed the Series E funding round and raised $160 million, in April 2021, which was co-led by Sequoia Capital India and GIC. [25] [26] [27]

Acquisitions

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References

  1. ↑ "Razorpay The Story The Lastest Unicon in Fintech". Dutch Uncles. 2021-01-18. Retrieved 2021-08-16.
  2. ↑ "Startup Story". corporatecitizen.in. Retrieved 2021-08-16.
  3. 1 2 Rangaiah, Mallika. "The Success Story of Razorpay | Analytics Steps". www.analyticssteps.com. Retrieved 2021-08-08.
  4. ↑ "The Razorpay Story". SmartCEO. 2017-02-06. Retrieved 2021-08-08.
  5. ↑ Abrar, Peerzada (2020-09-07). "Razorpay starts lending service for small businesses hit by Covid-19". Business Standard India. Retrieved 2021-08-08.
  6. ↑ "Razorpay launches collateral free line of credit for SMEs". The Economic Times. Retrieved 2021-08-08.
  7. 1 2 Ramesh, G.; Jangid, Anand; Sivamalai, Lewin; Rebelly, Aishwarya Bharathi (2020). "NPCI: Chartering a Payment Freeway". SSRN Electronic Journal. doi:10.2139/ssrn.3760921. ISSN   1556-5068. S2CID   233761507.
  8. ↑ "Mastercard, Razorpay join hands to make digital payments more accessible for MSMEs". The Economic Times. Retrieved 2021-08-08.
  9. ↑ "Mastercard and Razorpay join hands to make digital payments more accessible for MSMEs and startups". www.mastercard.com. Retrieved 2021-08-08.
  10. ↑ "Mastercard and Razorpay join hands to make digital payments more accessible for MSMEs and startups - Small Business Cafe" . Retrieved 2021-08-08.
  11. ↑ Ritchie, Harriet (2021-02-24). "MICROCAPITAL BRIEF: Mastercard, Razorpay to Increase Access to Recurring Payments for Startups, SMEs in India". MicroCapital. Retrieved 2021-08-08.
  12. ↑ "Online payment start-up Razorpay raises $120,000 from YCombinator". www.franchiseindia.com. Retrieved 2021-08-08.
  13. ↑ "Tech in Asia - Connecting Asia's startup ecosystem". www.techinasia.com. Retrieved 2021-08-08.
  14. ↑ Sewell, Dawson; Manipula, Melanie; Jhaveri, Neelam; Ogolla, Henry; Nisay, Aime Anne; Suter, Will; Sar, Amy; Christiansen, Jed; Holm, Aleksander. "Razorpay - Wiki". Golden. Retrieved 2021-08-08.
  15. ↑ "ETtech Morning Dispatch on Feb 25, 2021: Razorpay's big billion days". The Economic Times. Retrieved 2021-08-08.
  16. ↑ Asia, Malavika Velayanikal / Tech in (2015-10-27). "Fintech start-up Razorpay secures $9 million in series A funding". Business Standard India. Retrieved 2021-08-08.
  17. ↑ anthologies, Rupsa Das View More Posts With over 5+ years of experience in the field of; Writing, More Than a Year of Experience in the Field of Content; Das, Rupsa; student, an English Literature; Anthologies, Is a Co-Author of 20+; companies, compiler of two anthologies She had worked with some online news portal; Marketing, Digital; PR, travel blogging companies She is currently serving as the; Br. "Razorpay Startup: $3B Idea that was Rejected by 100 Banks". thedigitalyug.com. Retrieved 2021-08-08.{{cite web}}: |first5= has generic name (help)
  18. ↑ "Digital Payments Startup Razorpay Raises $20 Mn Series B Funding From Tiger Global And Y Combinator". Inc42 Media. 2018-01-15. Retrieved 2021-08-08.
  19. ↑ PYMNTS (2019-06-18). "Razorpay Notches $75M In Series C Round". www.pymnts.com. Retrieved 2021-08-08.
  20. ↑ Staff Writer (2019-06-18). "Razorpay raises $75 mln from Sequoia Capital, Ribbit Capital". mint. Retrieved 2021-08-08.
  21. ↑ "B2B Fintech Startup Razorpay Raises $75 Mn From Ribbit Capital, Sequoia". Inc42 Media. 2019-06-18. Retrieved 2021-08-08.
  22. ↑ "Razorpay Turns Unicorn With $100 Million Series D Funding". Forbes India. Retrieved 2021-08-08.
  23. ↑ "India's Razorpay raises funds at $3 billion valuation ahead of Southeast Asia launch". TechCrunch. Retrieved 2021-08-08.
  24. ↑ Singh, Shipra (2020-10-12). "Razorpay Becomes Fifth Fintech Unicorn After Raising $100 Mn in Series D Funding". Entrepreneur. Retrieved 2021-08-08.
  25. ↑ Bhalla, Tarush (2021-04-19). "Razorpay's valuation triples in six months on latest fundraise". mint. Retrieved 2021-08-08.
  26. ↑ "Razorpay raises $160 million at $3 billion valuation, plans for more acquisitions". Business Insider. Retrieved 2021-08-08.
  27. ↑ "Razorpay raises $160 mn funding from Sequoia Capital, GIC, others; Valuation triples to $3 bn". The Financial Express. 2021-04-19. Retrieved 2021-08-08.
  28. ↑ Abrar, Peerzada (2019-08-05). "Razorpay acquires Gurgaon-based fraud prevention AI startup Thirdwatch". Business Standard India. Retrieved 2021-08-08.
  29. ↑ Bhakta, Pratik. "Razorpay buys fraud analytics firm Thirdwatch". The Economic Times. Retrieved 2021-08-08.
  30. ↑ "Business boost: Razorpay acquires Opfin; to promote digital growth". The Financial Express. 2019-11-23. Retrieved 2021-08-08.
  31. ↑ "Payments company Razorpay buys payroll management firm Opfin - Times of India". The Times of India. TNN. Nov 23, 2019. Retrieved 2021-08-08.
  32. ↑ "Razorpay acquires Opfin, introduces corporate credit cards with RBL". Business Insider. Retrieved 2021-08-08.
  33. ↑ PYMNTS (2021-07-19). "Razorpay Acquires Startup TERA Finlabs". www.pymnts.com. Retrieved 2021-08-08.
  34. ↑ "Razorpay acquires TERA Finlabs in push for startup, MSME loans". The Economic Times. Retrieved 2021-08-08.
  35. ↑ Bhalla, Tarush (2021-07-19). "Razorpay acquires TERA in its 3rd buyout". mint. Retrieved 2021-08-08.
  36. ↑ https://www.ycombinator.com/companies/razorpay [ bare URL ]
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