Digital payments gateway start-up Razorpay, which started with a mission to simplify online payments for businesses in India three years ago, has evolved into a fintech company that can manage the entire flow of money for businesses.

From a start-up that helps businesses accept digital payments via credit/debit cards, net banking, digital wallets and UPI from their end customers, Razorpay in its 2.0 avatar has launched a slew of new products and payment solutions that are designed to solve the management of the entire flow of money for the 16.32 million under-served businesses in the country.

The new products are: Razorpay Route, Razorpay Smart Collect, Razorpay Subscriptions and Razorpay Invoices.

‘Converged’ solution

Talking about the start-up’s evolution, Harshil Mathur, CEO and co-founder, said: “From being a pure payment acceptance layer to a converged payments solution, we now manage the what, when, where and how of digital payments right from the moment a payment is initiated to the point it is fully reconciled and disbursed to the final destination.”

Pointing out that payment acceptance is not the only problem plaguing businesses today, he said there are other big challenges such as managing cash flows, disbursement of money, automating NEFT and bank wires, and collection of scheduled payments, which the new products will address.

While Smart Collect, Subscriptions and Invoices solve payment collection problems for merchants, Route solves vendor payouts that businesses have to make.

According to a recent report on digital payments in India, total payments via digital instruments is expected to touch $500 billion by 2020 from $50 billion at present.

Razorpay has over 40,000 merchants onboard, including small businesses, start-ups such as Goibibo, Zomato, Nykaa, Quikr, Chai Point, UrbanClap and NestAway, and other traditional organisations in the government and education sectors.

“We aim to make payments accessible to any business with a bank account and a phone number, and are targeting to double our merchant count to 90,000 by the end of the next fiscal year, impacting the lives of 25 million end consumers by 2020,” Mathur said.

The start-up expects more than 10x growth in volume and revenue by next fiscal and expects the new product suite to contribute to 30 per cent of its revenue. Tiger Global, Matrix Partners and MasterCard have invested a total of $11.5 million in Razorpay’s mission to simplify payments.

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