In 2019, Z47 made their initial investment of INR 107 crore in Ola Electric. The AI startup Krutrim and the ride-hailing company Ola Cabs are also owned by the venture capital fund.
Z47 and Tiger Global’s Exit Strategy
In October of last year, ET revealed that Z47 is reducing its ownership of Ola, the fintech startup Razorpay, the business-to-business (B2B) commerce company OfBusiness, and the local language content platform Dailyhunt in order to generate $150–180 million. At the same time, Tiger Global Management reduced its ownership of Ola Electric from 3.45% three months before to the end of June 2025 to 3.24%.
Through its Internet Fund III, Tiger Global currently owns INR 585 crore in the EV manufacturer. In June, Hyundai Motor Company and Kia Corporation made INR 552 crore and INR 137 crore from the sale of about 10.88 crore and 2.7 crore shares, respectively.
Ola Electric’s Financials: Revenue Drop and Profit Focus
As sales suffered in the face of heightened competition in India’s E2W sector, Ola Electric’s operational revenue for the first quarter virtually halved compared to the same period last year, and its loss increased. For the quarter that ended on June 30, the company reported a net loss of INR 428 crore on revenue of INR 828 crore.
The net loss decreased to less than half from INR 870 crore in the January-March quarter, but it increased from INR 347 crore a year earlier. In the March quarter, it reported operating revenue of INR 611 crore. During an earnings call, Bhavish Aggarwal, the business’s founder and managing director, stated that the company has now shifted its focus to profitability.
What’s Next for India’s EV Giant?
According to Aggarwal, the company has shifted from a strategy of aggressive penetration to one of more balanced and profitable expansion. Following a period of hypergrowth, the industry is now consolidating and is expected to experience another upswing soon. It’s time to combine operations till then.
At present, the world has experienced huge growth in online payments, and with the Covid-19 presence, people preferred to use online payment methods for almost everything as it is safe and secure. More and more people are opting for a cashless way to transfer money. Here, comes the work of the payment gateway. A payment gateway is basically a merchant service that connects the users’ bank accounts with the platform where the users need to transfer their money. A bank may provide a payment gateway to its customers, there is also a specialized financial service provider such as a payment service provider which provides it as a separate service.
Whether you are a small business or you have an established E-commerce business, good payment service is an essential factor for it. An online payment gateway is a secure and convenient way for a website or online business to accept payments from customers. When a customer makes a purchase on an e-commerce website, they enter their payment information, which is then processed by the payment gateway. The payment gateway verifies the information, checks to see if the customer has the funds available, and then transfers the funds from the customer’s account to the business’s account.
A payment gateway platform gives authority to the users to conduct an online transaction through various payment modes such as net banking, credit card, debit card, UPI, and other online payment apps. It is a third-party platform that provides the ability for the user to securely transfer their money to the merchant’s payment portal. In this era of the digital world, E-commerce is leading the market. As times are changing fast online businesses are also moving. So, it is important to know about the payment gateways in India.
In order to use an online payment gateway, you will need to sign up for an account and integrate the payment gateway into your website or online store. This typically involves adding a few lines of code to your website and may also require you to obtain a merchant account.
There are many different online payment gateways available, each with its own set of features and fees. In this article, we will talk about the top payment gateways in India that allow customers to make payments online. So, let’s take a look at them.
Popular wallet-based gateway, supports UPI, cards, EMI, and Buy Now Pay Later options
1.75% onwards
Razorpay
Mobile Applications
Google Play Store
Accepted Payment Methods
Domestic and International Credit & Debit cards, EMIs ( Credit/Debit Cards & Cardless), PayLater, Netbanking from 58 banks, UPI and 8 mobile wallets
Razorpay – best payment gateway in India
Razorpay is one of the best payment gateways in India for your business. It was started in 2014. Many entrepreneurs who use Razorpay for their business, have seen some increase in their conversion rate. Razorpay has helped businesses to solve the problem of digital payments. It is due to their smooth user experience. Also, the refund process is easy and automated. If your customer applies for a refund, Razorpay will automatically get the refund, if you set it to, without any extra widget or code. You can use Razorpay Subscriptions to execute the automated recurring transactions on various payment modes, through a platform that’s built for automation.
Razorpay Features
You can improve your business sales as Razorpay provides cashback and discounts to your customers
Payment modes include credit cards, debit cards, net banking, payments through UPI, and popular wallets.
Razorpay allows you to accept international payments from over 100 countries.
Manage your marketplace, automate bank transfers, collect recurring payments, share invoices, and avail working capital loans.
Instamojo
Mobile Applications
Google Play
Accepted Payment Methods
170+ payment methods including RTGS/Bank Transfer/NEFT/EMI
Instamojo – best payment gateway in India
Instamojo is one of the top-rated payment gateways in India. It allows businesses to create a business account instantly and the account can also be activated within a few minutes to collect online payments. This is a Bangalore-based company and the target of Instamojo is selling digital goods and collecting payments online. You can enroll yourself at Instamojo with a bank account and start your online selling business. You can also collect payments for physical goods and workshops or events.
Instamojo Features
To set up the payment gateway, no extra payment is needed.
Different types of payment methods are available.
Special care is being taken for the security of the server.
Businesses can create discount codes for their products.
Paytm has emerged as a leading payment gateway in India due to its online customer base with the very popular Paytm wallet. It supports domestic credit cards like Visa, MasterCard, Maestro, Amex, Discover, and Diners. With Paytm online transactions can be made anytime and from anywhere. It is the best payment gateway solution provider in India which has served some biggest eCommerce companies.
Some of the most popular companies which use Paytm are Jabong, OLA, Cleartrips, Redbus, GoIbibo, Zomato, etc.
How to Create Payment Links from the Paytm Business Dashboard
Paytm Features
The latest technologies are used for secure online transactions.
It has the feature of saved cards, where a customer doesn’t have to put their card details again and again.
Paytm is not only available as a desktop application but also supports smartphones and tablets.
CCAvenue – Payment Gateway for Small Business in india
CCAvenue is an authorized payment gatewayprovider by Indian Financial Institutions and is known as the most secure and best payment gateway to transact money for online shopping. Customers can make online transactions via Credit Cards, Debit Cards, Net Banking, Digital and Mobile Wallets, Mobile Payment, and Cash Card modes. It offers smooth, fast, and secure transactions to its customers. Currently, CCAvenue powers more than 85% of businesses in India.
CCAvenue Features
CCAvenue provides “Smart Analytics” by which you can see a real-time comprehensive statistical online report and a transparent history of all your transactions.
It has a ‘Mobile Checkout Page’ which supports all mobile operating systems.
CCAvenue also has CCAvenue In-built Advanced Shopping Cart’, CCAvenue S.N.I.P. ( Social Network In-stream Payments), it is one of India’s first genuine Social Commerce facilities.
Payflow
Mobile Applications
App Store and Google Play
Accepted Payment Methods
Accept all major debit and credit cards supported by their processor, including Visa, Mastercard®, American Express, Discover, JCB, and Diners Club. Payflow Gateway also supports L2/L3 purchase cards, prepaid cards, foreign currencies, TeleCheck, and ACH.
Payflow Logo
Payflow is offered by PayPal. It is known for being a secure and open gateway for payments. Payflow accepts all major credit and debit cards. It adds over 173 million customers regularly and supports more than 100 currencies. In India, it is used by Merchants for receiving international payments.
Payflow Features
It accepts and offers different payment methods.
The checkout process is customized with the help of APIs.
It supports fraud protection services and allows you to install it for an additional fee.
UPI, EMI, digital wallets, Debit/Credit cards, and 100+ other payment options
Cashfree – top payment gateway in India.
Cashfree is a low-cost and popular payment gateway in India. Cashfree helps businesses in India to accept payments online from various payment channels. The best thing about Cashfree is that it has direct integration with multiple banks which makes Cashfree a fast and reliable payment gateway. It is the only payment gateway in India that provides a wide range of payment options such as Visa, MasterCard, Maestro, Rupay, and Amex, including 70+ more net banking options. Cashfree also supports UPI, NEFT, IMPS, and PayPal. TDR is the transaction discount rate that every payment gateway charges from the merchants for processing the transactions to their bank account.
Cashfree Features
The setup cost is not needed.
Cashfree also supports online wallets like Paytm, PhonePe, and GooglePay.
Cashfree is the fastest settlement cycle of 24 hours to 48 hours and also offers popup, iframe and seamless checkout modes
BillDesk
Mobile Applications
Google Play Store
Accepted Payment Methods
120+ Credit cards, Debit cards, Banks, Net Banking, Wallets
BillDesk – online payment gateway provider
BillDesk is an Indian online payment gateway company based in Mumbai, India. BillDesk provides bill payment and settlement services to large billers like electricity, water, insurance, and other service providers. BillDesk also provides the ability to customers to decide how and when to make payments. BillDesk is a one-stop solution for customers through which customers can make all their payments at any time and from anywhere.
BillDesk Features
The integration is developer friendly and is quite easy and flexible..
BillDesk offers various payment methods.
Customers can also receive payment reminders or alerts.
Atom
Mobile Applications
Google Play Store
Accepted Payment Methods
Visa, Mastercard, Discover and American Express plus Amazon Pay, Apple Pay, Google Pay, PayPal, and Venmo
Atom Online Payment Gateway
Atom consists of various payment options which accept payment through all major debit cards and credit cards. Atom has completed over 15 million transactions and is used by thousands of merchants across the country. Atom is completely secured as it is backed with PCI DSS version 3.2 and 256-bit encryption which ensures a safe and secure transaction.
Atom Features
Atom provides multiple payment methods.
The integration is quite simple and easy.
Atom provides invoices after every payment.
HDFC
Mobile Applications
App Store and Google Play Store
Accepted Payment Methods
All major credit, debit cards and net banking in India, including Visa, MasterCard, Visa Electron, Diners, Rupay, Discover or Maestro
HDFC Best Online Payment Gateway
HDFC is one of the largest banks in India that offers a payment gateway service for merchants and businesses to accept online payments from their customers. Many organizations like VSNL, Sify, and IRCTC use HDFC. If you want to use HDFC on your website or mobile app, you need to use their EPI payment gateway services. The HDFC Payment Gateway allows merchants to securely accept a wide range of payment options, including credit and debit cards, net banking, and UPI payments. The advantages of the HDFC payment gateway are instant settlement, a 100% chargeback facility, the facility to accept payment in 15 international currencies, easy integration with existing applications, and support for various shopping cart applications.
HDFC Features
The HDFC Payment Gateway supports a wide range of payment options, including Visa, Mastercard, American Express, and Rupay credit and debit cards, as well as net banking and UPI payments.
The HDFC Payment Gateway uses 128-bit SSL encryption to secure your transactions and protect your financial information.
The HDFC Payment Gateway can be easily integrated with your website or mobile app, allowing you to customize the payment experience for your customers.
The HDFC Payment Gateway provides detailed transaction reports and reconciliation tools to help you manage and track your payments.
It accepts 15 types of international currencies.
It provides 24×7 customer service.
PayKun
Mobile Applications
Not Available
Accepted Payment Methods
UPI wallet payments, subscription payments, Debit/Credit cards, Master Card, diners club card, net banking, wallets, UPI/BHIM
PayKun online payment provider
PayKunis an easy solution for online payments for all types of businesses including small businesses, and medium to large. Any kind of merchant including a freelancer, a YouTuber, a blogger, from an eCommerce website or mobile app, an offline and online seller at the shop or showroom, or an individual, every type needs to have an easy hand on the modern technology for the collection of digital payments. It provides free plugins and SDKs readily available on the internet to integrate with all the major platforms of websites and mobile applications.
PayKun Features
Paykun has zero setup fees and zero maintenance fees.
It provides different types of payment methods.
The server is safe enough to use.
PayU
Mobile Applications
Google Play and App Store
Accepted Payment Methods
100 different payment methods are supported, including EMI, UPI, net banking, cards, wallets, Buy Now Pay Later, etc.
PayU best multi-currency payment gateway
PayU (formerly known as PayU Money) is one of the best multi-currency payment gatewaysto accept online payments. The PayU payment gateway is designed to be secure, reliable, and easy to use for both merchants and customers.
To use the PayU payment gateway, merchants need to sign up for an account and integrate the payment gateway into their online store or website. This can typically be done through the use of a software development kit (SDK) or by integrating with a payment processor or shopping cart platform. Once the integration is complete, merchants can start accepting payments from customers through the PayU payment gateway.
You can start accepting payments securely and seamlessly within your iOS, Android, or Windows app, within minutes, with its 100% online hassle-free onboarding process.
PayU Payment Gateway: What is a payment gateway and how does it work?
PayU Features
PayUMoney supports multi-currency transactions and international credit cards.
PayU provides over 100+ payment methods
The transaction history is available through PayU.
Mobikwik
Mobile Applications
Google Play and App Store
Accepted Payment Methods
Supports UPI, MobiKwik wallet, credit/debit cards, net banking, EMI, and Buy Now Pay Later options.
Mobikwik Best Online Payment Gateway
MobiKwik (earlier called Zaakpay) is one of the fastest-growing eCommerce payment gateways, helping businesses run smoothly. It focuses on giving users an easy experience by automatically detecting OTP (One Time Password) during payments.
Some well-known clients include Business World, BlueDart, Uber, and Zomato. Businesses can also integrate this gateway into their website or app with the help of eCommerce development companies.
Mobikwik Features:
Strong PCI DSS security to keep transaction data safe
Website analytics to track payment data
Supports credit/debit cards, wallets, international cards, UPI, and EMI options
Conclusion
The payment gateway has become the most important part of the world of increasing eCommerce businesses. If a business provides a good payment service, it automatically creates a good impression in front of its customers. With the increase of E-commerce businesses in the world, the need for proper payment gateways is also increasing.
FAQs
What is a Payment Gateway?
A payment gateway platform gives authority to the users to conduct an online transaction through various payment modes such as net banking, credit card, debit card, UPI, and other online payment apps.
Where payment gateways are used?
Payment Gateways are used mostly used by E-commerce businesses.
What are some top 5 Payment Gateways?
The top 5 payments gateways are:
Razorpay
Instamojo
BillDesk
Paytm
Payflow
Which is better, Paytm or PayPal?
The choice between Paytm and PayPal will depend on your specific needs and preferences. It may be helpful to consider factors such as geographical availability, payment methods, fees, and security when deciding which platform is right for you.
Who regulates payment gateways in India?
In India, payment gateways are regulated by the Reserve Bank of India (RBI), which is the central bank of the country.
Which is the cheapest payment gateway in India?
Cashfree Payment gateway is as of now, one of the cheapest payment gateways in India.
Is UPI available only in India?
UPI is not limited to India and has been adopted by some financial institutions and payment service providers in other countries as well such as Bhutan, Nepal, UAE, and the UK.
Which is better, Razorpay vs Billdesk?
Razorpay is better for startups and online businesses because it offers easy integration, many payment options, and instant settlements. BillDesk is more suited for large enterprises and utility bill payments due to its reliability and strong security.
Which is better, HDFC Payment Gateway vs Razorpay?
Razorpay is better for startups and developers due to its easy setup, modern features, and instant settlements, while HDFC Payment Gateway is ideal for established businesses needing a bank-backed, secure solution.
Which is the best payment gateway for startups in India?
The best payment gateway for startups in India is Razorpay because it offers easy integration, multiple payment options, fast settlements, and low setup hassle.
Which are the payment gateway for website in India?
Razorpay, PayU, and Cashfree are top payment gateways for websites in India, offering easy integration and fast payments.
Which is the best payment gateway for online business?
The best payment gateway for online business in India is Razorpay due to its seamless integration, wide payment options, and quick settlements.
INDIA, Bengaluru, 24 June 2025: In a significant step towards bridging the credit gap for India’s emerging businesses, RazorpayX, the business banking platform of Razorpay, today announced the launch of RazorpayX Corporate Cardsin a strategic partnership with Mastercard, RBL Bank, and YES Bank. The cards are built for India’s tech-first and internet-first businesses, making it easier for them to get the credit they need.
Backed by YES Bank and RBL Bank, and powered by Mastercard’s globally trusted network, these corporate cards use Razorpay’s cutting-edge fintech platform to deliver reliable financial solutions, allowing founders to focus on building, not battling financial roadblocks.
Despite a record $254 billion in credit card spending in FY’25, a 15% year-over-year increase, and over 100 million credit cards in circulation, the majority of Indian businesses remain underserved by traditional financial systems. While India’s credit card market crossed $220 billion in FY’24, nearly 95% of startups and mid-sized businesses still face significant barriers to accessing credit, contributing to a substantial $530 billion credit gap.
Addressing these challenges, the RazorpayX Corporate Cards are designed to empower founders and their finance teams with greater control, flexibility, and support in managing operational expenses. By leveraging Razorpay’s platform data, these cards offer credit limits of up to ₹2 crore, without the need for collateral, to businesses overlooked by traditional financial institutions. This ensures founders preserve their personal credit scores while unlocking growth capital. The RazorpayX Corporate Card is thoughtfully designed to support essential business spending needs, from managing day-to-day operations to enabling greater financial control. It is built to integrate seamlessly with the RazorpayX dashboard, empowering finance teams and founders with enhanced visibility over company-wide expenses.
Beyond credit access, these cards offer meaningful cost efficiencies through Razorpay’s exclusive Savings Negotiator Concierge, which helps startups negotiate and unlock up to 30% savings on over 500 curated SaaS, technology, and marketing platforms
Businesses benefit from cashback rewards on key technology and marketing expenses, competitive forex rates with a low markup fee of 2.5%, and the ability to pay GST returns directly using the card, streamlining complex financial operations
“Startups shouldn’t have to depend on personal credit cards to fuel their growth,” said Ayush Bansal, VP & GM, RazorpayX. “With RazorpayX Capital, we’re embedding flexible, collateral-free credit right into the RazorpayX ecosystem, empowering businesses to manage procurement spends and employee expenses with industry-first rewards and offers. This enhanced offering strengthens RazorpayX as the go-to platform for founders to manage, grow, and scale their businesses seamlessly.”
Highlighting the pressing need for innovative financing in the sector, Ravi Datla, Senior Vice President, Product and Solutions, South Asia at Mastercard, said, “India’s startups and small businesses are the driving force behind the nation’s socioeconomic transformation—creating jobs, sparking innovation, and enabling inclusive development. Empowering them with next-generation financial tools and solutions is not merely support; it’s a strategic imperative for sustained national growth. Mastercard is proud to be part of this initiative, which harnesses digital innovation to address the real challenges faced by existing and emerging entrepreneurs. These new corporate cards are designed to foster greater resilience, scalability, and long-term success for India’s vibrant business ecosystem.”
Mr. Bikram Yadav, Head- Credit Cards, RBL Bank, said, “At RBL Bank, we understand that today’s digital-first businesses demand seamless, tech-enabled financial solutions. By partnering with RazorpayX, we are launching a solution that directly addresses this requirement. The Corporate Cards not only offer easy access to credit but also integrate effortlessly with digital platforms. This collaboration reflects our commitment of backing bold dreams and supporting the culture of entrepreneurship that is reshaping India’s economic landscape.”
Mr. Anil Singh, Country Head – Credit Cards and Merchant Acquiring, YES BANK, said, “At YES BANK, we are focused on redefining credit access for India’s startup ecosystem. Our partnership with RazorpayX and Mastercard reflects our commitment to innovation-led banking that is responsive to the evolving needs of today’s digital-first businesses. These Corporate Cards are more than a line of credit—they are a strategic enabler for startups to scale responsibly, manage expenses smarter, and preserve liquidity for growth.”
Annual cardable expenses in emerging sectors are estimated at $340 billion, including $2.4 billion in SaaS and marketing spends, highlighting the growing demand for accessible, flexible corporate credit. RazorpayX Corporate Credit Cards equip startups with tools to manage these expenses effectively while unlocking critical working capital for growth.
This launch is part of RazorpayX’s ongoing efforts to simplify financial operations for MSMEs and startups, offering solutions that help them focus on growth instead of everyday financial hurdles. From introducing Automated Escrow+ for secure, real-time money transfers to launching a dedicated Forex service that streamlines foreign funding inflows to India and automating payroll processing, RazorpayX continues to remove financial friction at every step of the startup journey.
Payment aggregators Razorpay and Cashfree also intend to end all third-party collaborations and integrations with payment orchestration systems like Juspay in response to PhonePe’s lawsuit. Cashfree intends to stop using third-party routers and orchestrators for integrations. According to a statement from a Cashfree Payments representative, the brand can expedite feature release and provide better support and merchant experience by providing direct integration. According to a statement from Razorpay, it will stop integrating with any third-party payment orchestration systems and instead provide its clients with payment gateway services via direct integrations. Razorpay will halt all integrations via third-party routing services going ahead. Through its own direct integrations, the business will provide payment gateway services to our clients. According to a Razorpay representative, the company feels that direct integrations are the only way to guarantee that its most recent innovations quickly reach its clients and improve their operations and experiences.
Pine Lab Continuing with the Collaborations
Pine Labs, a provider of digital payment solutions, seems to have remained loyal to Juspay and stated that it will keep collaborating with other orchestration service providers. Collaboration and open architecture are crucial in the technology industry. Amrish Rau, the founder and CEO of Pine Labs, told a media outlet that the company will keep promoting this and that its online platform will keep collaborating with other orchestration platforms to give customers and merchants the greatest possible experience. Online retailers may handle several bank agreements using a single payment gateway thanks to payment orchestration solutions. In short, based on their greater success rate at the moment, these systems enable a merchant to route transactions to the appropriate payment aggregator. Sheetal Lalwani, the chief operating officer (COO) and cofounder of Juspay, informed a well-known media site that the two platforms’ exit will not affect the company’s operations. He claimed that merchants are the source of the company’s income and that some payment aggregators are depriving their clients of options.
The construction of a full-stack payment system by Juspay to handle payments for the Open Credit Enablement Network (OCEN) and other commercial payment use cases was covered by a media outlet on December 14, 2023. Sheetal Lalwani, a co-founder of Juspay, had previously stated that he would not go up against other payment aggregators directly.
Why Payment Aggregators Are Shifting Business Operations?
A month prior, the digital payments juggernaut PhonePe allegedly ended all third-party integrations and agreements with payment aggregators, including Juspay. The move, according to PhonePe at the time, would allow it to control the whole value chain and reduce reliance on external parties. Although they are still in the early phases, Razorpay and Cashfree have also developed their own orchestration platforms, Optimiser and FlowWise, respectively. Vimal Kumar and Ramanathan RV founded Juspay in 2012, and Lalwani joined them later. Juspay is a technological platform that integrates payment gateways to give merchants an enterprise-grade, end-to-end, secure, and dependable payment stack.
In honour of its tenth anniversary, digital payments startup Razorpay announced on 24 December that it is offering every one of its current employees an employee stock ownership plan (Esop) worth INR 1 lakh. The program has a total Esop value of more than INR 30 crore, according to the Bengaluru-based company, which employs more than 3,000 people.
Esops are firm shares that are given to employees and can be cashed at a fixed price after a specified amount of time. When Razorpay was founded in 2014, its founders didn’t consider it a business; rather, they saw it as a solution to a significant customer issue, and they were interested in the challenge of integrating payment systems. According to Harshil Mathur, cofounder and CEO of Razorpay, solving that issue has been the unifying factor up to this point.
As Razorpay continues to innovate, streamline money transfers, and provide even more value for companies in India and abroad, the Esop program is the brand’s method of guaranteeing that every team member benefits from the success, he continued.
Shifting Parent Company’s Domicile to India
In keeping with the reverse-flipping trend among Indian startups hoping to take advantage of high valuations in the nation’s public markets, the fintech company made the statement as it requests permission from the Reserve Bank of India (RBI) to move its parent company’s domicile from the US to India.
Razorpay, which was recently valued at about $7.5 billion, may face a 30–40% decline in fair market value if it decides to do the reverse flip to India, according to a media article published on November 21. Razorpay has turned a profit in its primary payments operation and intends to go public within the next two years. However, Mathur told a media source in an interview on December 18 that it would take another 1.5 years for the company to reach full profitability.
In FY24, the company’s payments division recorded INR 2,501 crore in total revenue and INR 34 crore in net profit. For FY24, the business also disclosed an annualised total payments volume of $180 billion.
Business Dynamics of Razorpay
Razorpay was established in 2014 and offers companies of all sizes a full range of payment options. To help businesses receive, process, and distribute payments, it provides services like payment gateways, payment aggregates, and financial management solutions. Investors such as Lightspeed Venture Partners, Tiger Global, Peak XV Partners Matrix, and Y Combinator are among those who support it.
Razorpay has started onboarding new merchants since obtaining final permission for its payment aggregation company in December 2023. Despite the fact that the enormous Esop pools may seem like “wealth on paper,” consumer internet companies have occasionally given their staff members the opportunity to sell their interests. This year, more than a dozen modern businesses, such as Swiggy, Meesho, Purplle, Urban Company, Whatfix, Pocket FM, Dehaat, and MyGate, have enabled Esop buybacks.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Smartphones and the internet certainly took the world by surprise, but, at the same time, they signaled a world full of advanced technologies that would extend efficiency and availability for everyone living in it. The growth of cutting-edge software and technology thus helped in opening the gates to limitless opportunities for all the thriving sectors of the world. The banking and payments industry is one of the sectors where these developments have ushered in some major transformations. Digital payments or online payments are some of the many advantages that the new-age technologies have brought forth. The growing ways of payments and instant online payments of today are not only benefitting the banking and finance industry but the merchants and the general public as well all across the globe.
In the same field, with the vision to revolutionize the online payment mechanisms by providing transparent and developer-friendly APIs with hassle-free user integration, Razorpay was launched by Shashank Kumar and Harshil Mathur in the year 2014.
Razorpay is an Online Payment Solution in India allowing businesses to accept, process, and disburse payments with its product suite. It helps the business entities gain access to all the modern payment modes like credit and debit cards, net banking, UPI, and other popular wallets in the country namely JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp. Razorpay’s online payment solutions can be integrated by both web and mobile applications.
Here’s more about Razorpay, its Founders, Team, Industry, Mission and Vision, Name, Tagline, Logo, Business and Revenue Model, Competitors, Future Plans, “when was Razorpay established?” and more.
As mentioned earlier, Razorpay enables online payments by providing developer-friendly APIs, powered by an effective integration process. Razorpay also offers a comprehensive dashboard to manage payments, as well as other plugins and integration suites for all major backend technologies and e-commerce platforms. With its efficient products, Razorpay is bettering the online payment systems for startups and other companies and improving the individual experience too.
In September 2017, Razorpay launched four products – Route, Smart Collect, Subscriptions, and Invoices, which allow businesses to manage multiple aspects of money movement including collection, reconciliation, and disbursal.
During the same time, Razorpay also announced that it was entering the SME lending space with its subsidiary venture called Razorpay Capital. It is a lending platform that is designed to support Small and Medium Enterprises with instant and easy access to lenders. This initiative is aimed at solving liquidity and cash-flow challenges by providing these firms with quick settlements and collateral-free loans. A beta version of the platform was launched in September 2018 and has already disbursed $30 million in loans.
Also, Razorpay added two new features to its services offered. These are respectively called ‘Partial payments’ and ‘Batch Uploads’.
Partial Payments – It allows the end-users to make payments in part against a particular order ID instead of making the entire payment at once
Batch Uploads – It lets the business entities generate and process links in bulk rather than creating individual links by uploading a single file containing collect order details.
Razorpay X (Comprehensive Banking Platform) is an AI-driven API banking platform, which is set to fundamentally transform how businesses move money. The account number provided enables businesses to manage all forms of pay-outs (salary, vendor payments through NEFT, RTGS, IMPS, UPI) and receivables on Razorpay itself. Posing as a unique solution, businesses can now do everything and more with Razorpay that they were existentially doing with banks till now. Lately, there has been a significant enhancement to the existing online payment mechanism. Razorpay has also launched more new features to its checkout. These are essentially called Affordability, Personalization, and Native OTP.
The Indian market for fintech has seen massive growth in the past decade and has been hailed as the world’s fastest fintech industry in terms of growth where over 67% of around 2,100 fintech companies have been set up if we look back at the last 5 years.
As per the Razorpay Team, the Indian fintech market will touch INR 6.2 lakh crore by 2025. It also added that COVID-19 has accelerated the company’s digital payments segment.
Razorpay – Founders and Team
Razorpay is co-founded by IIT Roorkee alumni Shashank Kumar and Harshil Mathur.
Shashank Kumar and Harshil Mathur – Founder Razorpay
Harshil Mathur
The CEO and Co-founder of Razorpay Harshil Mathur is an IIT Roorkee alumnus who completed BTech in Technology. Mathur further went on to join Y-Combinator in the W15 batch in 2015. Harshil started his career as a Wireline Field Engineer at Schlumberger. After his brief stint with the company, Mathur then decided to found Razorpay in 2014 with Shashank Kumar.
Shashank Kumar
Shashank Kumar is known as the Co-founder and CTO of Razorpay. He was also a former IIT Roorkee student who completed his BTech in Computer Science before attending Y-Combinator in 2015. After completing 3 months as a research intern in the Computer Science and Engineering Department at the University of Minnesota, Kumar joined another internship at Microsoft as a Software Development Engineer. Concluding 3 months as a Microsoft intern, Kumar eventually joined as a Vice President at SDS Labs before he joined as a Software Development Engineer at Microsoft. He worked as an employee with the software giant for less than 2 years and then decided to part his ways and co-founded Razorpay.
Razorpay – Startup Story | How did it start?
This startup idea originated when the co-founders were working on the crowdfunding portal and in the process came to realize how muddled the online payment mechanism was in India. Besides, they also discovered that the US-based payment systems are not ideal for the Indian markets, especially if we look at the credit card penetration. Following these, they changed tracks to work on the payments problem in India, where the implementation of technology was really tough. Furthermore, the rate of payment failures was also considerably high and the pricing that was available earlier lacked transparency.
“We realized that most online payment gateway solutions were extremely cumbersome to get started on, especially for start-ups and small- and medium-sized enterprises. When we contacted a few payment gateway companies, we were asked for our past operational records, presence of physical offices, security deposits, and very high set-up fees. Online reviews of most payment gateways in India confirmed similar bad experiences,” said Mathur.
They, thus, started to build a friendly online payment gateway that would be easy to integrate and use. After conducting some market surveys in the initial stages to verify the feasibility of the idea and then accumulating a positive response from potential customers, the co-founders decided on starting to work full-time on the Razorpay idea.
This initiative originated in Jaipur as a part of the winter batch of Y Combinator’s startup program in 2015. Eventually, both these co-founders quit their respective jobs at Microsoft and Schlumberger after being supported 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). Razorpay is also regarded as the second India-focused company to be chosen by the Y-Combinator program, the first being ClearTax.
As part of Razorpay’s mission and vision, the company ensures that “businesses find it easy to accept and receive payments.”
Founded by IIT Roorkee alumni, Razorpay believes in revolutionizing money management for online businesses. The company aims to do it by providing clean, developer-friendly APIs and hassle-free integration. It offers a fast, affordable, and secure way for merchants, schools, eCommerce, and other companies to accept and disburse payments online. Furthermore, Razorpay also helps its users to own a fully-functional current account and avail of working capital loans.
Razorpay – Name, Tagline and Logo
Razorpay is currently operating with the tagline #PoweringDisruptors.
Razorpay Logo
Razorpay – Business Model and Revenue Model
Razorpay charges 2% fees on every subscription collection transaction made through their gateway. With the emergence of Razorpay 2.0, the company has seen a growth in its revenue streams. It now contributes about 30% of Razorpay’s total revenue generation. This online payment portal is now looking to increase its average product adoption from one to two. The team expects RazorpayX and Razorpay Capital to contribute close to 35% of the total company’s revenues.
Razorpay – Partnerships
Razorapy has partnered with many companies; some of the companies are:
Razorpay, in collaboration with Peak XVPartners and Lightspeed, launched a Venture Investment Programme to fund 10-15 early-stage startups annually. The program will invest up to $1 million per startup across fintech, healthcare, education, logistics, and hospitality sectors.
Razorpay is partnering with the Ministry of Home Affairs and Indian Cyber Crime Coordination Centre to enhance digital payment security on December 2, 2024.
Razorpay has partnered with Truecaller in order to create great shopping experiences that improve convenience for both customers and companies on August 31, 2023.
Razorpay partnered with Axis Bank and the NPCI of India to launch Turbo UPI on May 30, 2023.
Razorpay partnered with Mastercard in July 2021, and this partnership helped the company, together with two other companies, Rupay and Visa, launch TokenHQ.
Company partnered with Sokin in August, 2020; it is the first European business to do so with Razorpay. Through this arrangement, customers will have access to a rapid, secure, and legal means of transferring money back home.
Razorpay and Shiprocketannounced a partnership in August, 2020 that will accelerate daily operations for logistics companies while reducing many inefficiencies.
RazorpayX partnered with Visa will introduce corporate cards to support small business owners in November, 2020.
Razorpay and PayPal have partnered to integrate with and accept payments from global clients in year 2020
Razorpay – Competitors
The online payments market is fairly crowded when it comes to ventures operating in the sector. In a market scenario like this, Razorpay competes with both well-established and new entities. Some of the prominent Razorpay competitors are:
Razorpay has raised total funding of $816.3 million,as of June 6, 2022. Razorpay last raised around $75 million on May 9, 2022, in a secondary transaction ESOP sale.
The company raised $375 million in the previous Series F funding round with the help of Alkeon Capital, Lone Pine, and TCV, who were the lead investors of the round the company saw on December 19, 2021. Furthermore, this round also saw other existing investors like Tiger Global, Sequoia Capital India, GIC, and Y Combinator. The Series F round is expected to help the company ramp up its banking suite, RazorpayX. With this round, the company has now become the most valued fintech startup in India. The valuation of Razorpay was last confirmed to be $7.5 billion on December 2024.
The company’s October 2020 funding round led by Sequoia Capital India, GIC, and existing investors of $100 million has given Razorpay a “Unicorn” Status amidst the coronavirus pandemic.
Razorpay – Unicorn Status
“We at Razorpay have always been a payments company, and our focus has always been financial solutions. With this funding we want to go further in our reach. We aim to build deeper tech products and solutions, as we always have done” – Says Harshil Mathur, Co-Founder & CEO, Razorpay
Here are the funding details of Razorpay below:
Date
Funding Round
Deal Amount
Lead Investors
May 9, 2022
Secondary Market round
$74.18 mn
Lightspeed
December 19, 2021
Series F
$375 mn
Alkeon Capital, Lone Pine Capital
September 20, 2021
Venture Round
–
Salesforce
April 19, 2021
Series E
$160 mn
GIC, Sequoia Capital
October 12, 2020
Series D
$100 mn
GIC, Sequoia Capital
June 18, 2019
Series C
$75 mn
Ribbit Capital, Sequoia Capital
January 15, 2018
Series B
$20 mn
Tiger Global
July 1, 2016
Corporate Round
–
Mastercard
October 27, 2015
Series A
$9 mn
Tiger Global
March 23, 2015
Seed Round
$2.6 mn
–
Razorpay – ESOPs
Razorpay’s journey in ESOP buybacks began in November 2018 when it organized its first ESOP sale for 140 employees. Subsequently, in November 2019 and March 2021, the company conducted its second and third ESOP sales, with 400 and 750 eligible employees, respectively. The March 2021 ESOP buyback was valued at $10 million. Razorpay announced a major ESOP buyback program, where approximately 650 existing and former employees sold their shares, collectively valued at nearly $75 million. These shares were sold at a 15% discount compared to the company’s preference shares, following the entry of Lightspeed and Moore Strategic Ventures into the company’s cap table. This $75 million ESOP buyback initiative marks Razorpay’s fourth and largest to date, positioning it as the second-largest buyback in the Indian startup ecosystem, with Flipkart’s Rs 600 crore ESOP buyback in 2021 standing as the largest of such buybacks.
To date, Razorpay has awarded ESOPs to more than 1,940 employees, both current and former, creating significant wealth opportunities for its workforce.
Razorpay – Acquisitions
Razorpay has acquired eight companies as of September 12, 2023. The acquisition of BillMe was the latest acquisition on September 12, 2023. The acquisition of PoshVine on September 27, 2022, was followed up with the acquisition of Ezetap on August 18, 2022, and IZealiant Technologies on March 16, 2022. The company acquired Curlec on February 8, 2022, and TERA Finlabs on July 19, 2021. The last two of acquisitions are Opfin on November 23, 2019, and ThirdWatch on August 5, 2019.
Here’s a listing of the 8 acquisitions of the company:
Acquiree Name
Date
Price
BillMe
September 12, 2023
–
PoshVine
September 27, 2022
–
Ezetap
August 18, 2022
–
IZealiant Technologies
March 16, 2022
–
Curlec
February 8, 2022
–
TERA Finlabs
July 19, 2021
–
Opfin
November 23, 2019
–
ThirdWatch
August 5, 2019
–
Razorpay – Growth and Revenue
Razorpay has managed to record an exponential growth rate since its inception, and currently, the company powers payments for more than 5 million small and large businesses, including Facebook, Ola, Swiggy, Zomato, Indian Oil, Cred, and more. The Bangalore-based fintech services company claims to process total payments worth around $50 billion annually and records a healthy growth rate of 40% – 45% month-on-month.
The company is now hailed as the most valued, privately-held fintech company with a valuation of $7.5 billion, and the second-most valued Indian fintech service company after One97 Communications Ltd. The valuation of Razorpay witnessed a seven-fold jump in its valuation since 2021 when it was valued at a little over $1 bn.
Some of the growth highlights of Razorpay at a glance are:
The merchant count increased to 3,00,000 in 2019, which is currently estimated at over 8 million, and may rise to 10 million too in FY22.
Razorpay achieved $60 bn in total payment volume (TPV) via its platform in 2021, 20% above $50 bn, which was targeted for the year.
Razorpay witnessed an impressive 3X increase in its transaction volume, which was registered at around 400% in September 2021.
The fintech startup has deployed its ZealPro product suite across 50+ banks spread over 18+ countries in Asia and Africa.
On the disbursement side, Razorpay powers more than 5% of the IMPS transactions.
Out of the Indian unicorns, more than 34 of them are powered by Razorpay, when last reported in December 2021.
Razorpay Became Payment Aggregator After the RBI Sanction
Razorpay received in-principle approval from the RBI against the payment aggregator license, as per reports dated July 8, 2022. Pine Labs was another company that received the same, as its wholly-owned business Setu received the same via its subsidiary, Agya Technologies, which is now an account aggregator. PhonePe and NSDL E-Governance were two other entities that received the same in 2021.
Company also released the first product of its kind in the world: Buy Now Pay Never (BNPN) on April 1,2022.
Financials
Razorpay Financials
FY22
FY23
FY24
Operating Revenue
INR 1,481
INR 2,279 crore
INR 2,475 crore
Total Expenses
INR 1,476 crore
INR 2,283 crore
INR 2,454 crore
Profit/Loss
Profit of INR 7.3 crore
Profit of INR 7.2 crore
Profit of INR 33.5 crore
Razorpay Financials
EBITDA
Shadowfax Financials
FY22
FY23
EBITDA Margin
3%
2.5%
Expense/Rs of Op Revenue
INR 1
INR 1
ROCE
3%
2%
Razorpay – Products and Features
Razorpay has launched many products and features some of the prominent features are:
Curlec By Razorpay (July 2023): Razorpay introduced its first international payment gateway, Curlec By Razorpay, tailored for the Malaysian market.
MoneySaver Export Account (July 26, 2023): Razorpay launched a special solution for Indian exporters called the MoneySaver Export Account.
Turbo UPI (May 2023): In collaboration with the National Payments Corporation of India (NPCI) and Axis Bank, Razorpay introduced “Turbo UPI.”
Payment Reconciliation Service (April 27, 2023): Razorpay, as a member of ONDC, became the first payment gateway to launch a payment reconciliation service for buyer and seller apps.
Affordability Widget (January 20, 2023): Razorpay unveiled the Affordability Widget as part of its Affordability Suite.
Foreign Exchange Service (January 30, 2023): Razorpay initiated a foreign exchange service to assist startup founders in repatriating venture capital raised abroad to Indian bank accounts.
UPI Autopay on QR (Global Fintech Fest 2023): Razorpay and NPCI jointly unveiled “UPI Autopay on QR” at the Global Fintech Fest 2023.
Accept Credit Card Payments via UPI (January 20, 2022): Razorpay became the first company to enable merchants to accept credit card payments through UPI.
Digital Lending Platform (November 2022): Razorpay launched a digital lending platform catering to NBFCs and fintech companies.
Razorpay – Investments
Razorpay has seen 4 major investments to date. The latest investment of Razorpay was in HostBooks on June 10, 2022. The Gurgaon-based fintech startup, which has raised its Series A funding round worth $3 mn, where Razorpay was counted as the lead investor. Biswajit Mishra and Kapil Rana founded HostBooks in 2009, which is currently serving as a cloud-based platform that provides accounting and compliance functions to small and medium enterprises (SMEs). HostBooks will use these funds to scale up operations and the product suite they have.
The previous investment of Razorpay was in the Seed Round of NextPay, a payments fintech that supports SMEs in the Philippines.
Razorpay had its share of challenges and yet another challenge came up in the form of cybercrime. Razorpay underwent a theft of Rs 7.3 cr against which the Bengaluru-based fintech company has filed a complaint with the South-East cybercrime police. The cybercrime was conducted over a period of 3 months and the police are trying to track down the hacker, as far as the reports dated May 20, 2022. The Head of legal disputes and law enforcement, Abhishek Abhinav Anand of Razorpay, filed a complaint when the company failed to reconcile the receipts of Rs 7,38,36,192 against 831 transactions, on May 16th, 2022.
Razorpay-Alt News Controversy
The Alt News Co-founder Mohammed Zubair was arrested on June 27, 2022, in response to a tweet made by him in March 2018, which had the picture of a banner of “Honeymoon Hotel” repainted as “Hanuman Hotel”. However, as the case proceeded, it came out that Alt News didn’t receive foreign funding from countries like Syria, Australia, Singapore, Pakistan, and the UAE, but the money it got was only from donations from the Indian banks via Razorpay. This had Razorpay suspend all its payments that ensured donations to Alt News. However, following clarity on the issue, the reputed payment gateway service provider has unblocked and reinstated the merchant account. Nevertheless, Razorpay was strongly criticised for suspending the Alt News donation links and admitting the sharing of the donors’ data with the investigating agency. Alt News also stated that the payment gateway-providing company shared the donors’ data without asking for any consent from the fact-checking website. The Razorpay CEO, Harshil Mathur has finally opened up and mentioned that the data that Razorpay shared was “within the scope of the investigation”, as per reports dated July 9, 2022.
Razorpay – Awards and Recognition
The various awards and recognitions that Razorpay received throughout the years include:
2022- At the ET Startup Awards, Razorpay received the “Startup of the Year” award.
2018 – Recognised as one of India’s Top 50 Mid-Sized Workplaces in the category of “Great Places to Work.”
2018 – Awarded by IAMAI as the “Best Digital Payment Facilitator.”
2018 – Awarded by LinkedIn as India’s 25 Most Sought-after Companies to Work for.
2017 – Was a runner-up for the “Financial Express Software Product of the Year.”
2017 – The co-founders Shashank Kumar and Harshil Mathur got selected for the ‘Forbes 30 Under 30’.
2017 – Backed the Bronze Award for the Best POS Innovation by PYMNTS.com.
2016 – Made it in the Nasscom ‘League of 10’ Companies.
Razorpay announced its strategic decision on February 23, 2024, in line with its aggressive intentions to conduct an initial public offering (IPO) within the next two years. This financial move is a major turning point in Razorpay’s future trajectory and reflects the company’s deliberate attempts to position itself favorably for the impending IPO.
As it gets ready to have a significant impact on the public markets soon, Razorpay’s dedication to maneuvering the financial environment with accuracy and foresight is demonstrated by the reverse flipping technique.
FAQs
What is Razorpay?
Founded in 2014, Razorpay is a Bangalore-based fintech company that stands as a popular payment gateway service provider for online payments. With a wide variety of payment modes that Razorpay enables the merchants to have access to, it allows businesses and individuals to accept, process, and disburse payments via its product suite. With its fast and effective products, Razorpay is revolutionizing the online payment systems for startups and others.
When was Razorpay established?
Razorpay was established in 2014 by Harshil Mathur and Shashank Kumar.
What is the transactional limit for Razorpay?
Razorpay encourages transactions up to a maximum payment of INR 5,00,000. However, the Razorpay limit per transaction can also be increased by speaking to Razorpay customer service support.
How much does Razorpay charge per transaction?
Razorpay charges around 2% per transaction according to its standard plan designed for small and medium-sized businesses and individuals.
Does Razorpay refund money?
In case of an incomplete or failed payment, Razorpay refunds the amount back to the source.
Razorpay has received $816.3 million in funding to date, as of December 2024.
What is the Razorpay helpline number?
The Razorpay helpline number to contact the company is 1800-123-1272.
How to change the business name on Razorpay?
The process of changing Razorpay business name is easy and efficient for the users to follow. They simply need to go to the Customized Checkout section, and then navigate to Change Business Name and Description to do effortlessly. This will help them change the business name that appears on the Checkout section of the Payment Link’s payment request page.
Does Razorpay charge for UPI?
No, Razorpay doesn’t charge for UPI transactions.
Does Razorpay login need money?
No, Razorpay login is via an easy process after the user has already signed up with the Razorpay company. There are no setup or maintenance fees for Razorpay account and the Razorpay login doesn’t even need money.
In partnership with venture capital firms Peak XV and Lightspeed, fintech company Razorpay announced the Razorpay Venture Investment Programme on November 13, 2024. The programme will invest in more than 50 early-stage business-to-business (B2B) enterprises.
Every year, the company and its venture capital partners will invest in ten to fifteen early-stage startups, offering B2B startups at different stages of development financial, technological, and leadership support. The initiative has the potential to raise up to $1 million for early-stage enterprises.
Based in Bengaluru, Razorpay is a business-to-business (B2B) omnichannel banking and payment platform. Over the next five years, India is expected to welcome an additional 10-15 unicorns in the B2B sector due to the rising interest in assisting entrepreneurs in this field, the business said in a statement.
Companies Benefiting from Razorpay’s Application Programming Interface
Razorpay‘s sandbox environments and API (Application Programming Interface) stack will be accessible to early-stage finance startups. This will cover product alliances, customer relationships, and introductions to the distribution network.
The company’s founders and other members of the executive team will advise the entrepreneurs one-on-one. The programme for the entrepreneurs will be run by Vishnu Acharya, Razorpay’s head of strategy and corporate development. According to Razorpay, the business-to-business market is still one of the most promising sectors with significant development potential. According to Harshil Mathur, co-founder and CEO of Razorpay, the company hopes to facilitate this process with the Razorpay Venture Investment Programme by giving founders access to the appropriate technology, partnerships, and coaching to enable them to innovate and scale more quickly.
Startups Will Get Guidance from Around 3000 Founders
Razorpay intends to use the programme to provide one-on-one coaching from its founders and other executives, as well as to expand access to its API stack and integrate it with its tech platform. Additionally, startups will get access to the Razorpay Rize network, which consists of more than 3,000 entrepreneurs and companies.
Ishaan Mittal of Peak XV and Dev Khare of Lightspeed expressed excitement about the programme, pointing out that it has the ability to promote ideas aimed at SMEs by utilising Razorpay’s payment infrastructure and wide-ranging SME network.
B2B Startups In India
The magnitude of India’s mostly unorganised B2B industry and disjointed supply chain, according to a report by Bessemer Venture Partners, makes B2B markets extremely promising. B2B e-commerce made up only 1% of India’s total B2B market in 2022, which is a sharp contrast to its very small share in 2019. The adoption of B2B e-commerce is expected to have a notable uptick, nevertheless, with estimates suggesting that by 2030, its proportion of the market would be just less than 5%.
Report further predicts that tech-enabled, online-first B2B marketplaces will offer an incredible $200 billion business opportunity by 2030. It’s crucial to remember that, despite this tremendous development, online B2B gross merchandise value (GMV) would still only make up around 5% of all B2B transactions in India, which is far less than the penetration in other nations.
In today’s digital age, online payments have become an essential part of our daily lives. With the rise of e-commerce and other online businesses, there is a growing need for reliable and secure payment gateways. One such platform that has gained popularity in recent years is Razorpay.
Founded in 2014 by IIT Roorkee alumni Harshil Mathur and Shashank Kumar, Razorpay has emerged as one of India’s leading online payment gateways, offering a range of financial solutions to businesses. In this article, we will delve into the business model of Razorpay and explore how the company makes money.
Razorpay is a leading payment gateway in India that enables businesses to accept online payments via credit/debit cards, net banking, UPI, and other popular payment methods. Founded in 2014, Razorpay has quickly become a trusted partner for thousands of businesses across various industries, providing a secure and easy-to-use platform for payment processing. With its cutting-edge technology and top-notch customer support, Razorpay has established itself as a reliable and innovative player in the payment gateway market, helping businesses of all sizes streamline their payment operations and drive growth.
Main Products and Services of Razorpay
Razorpay offers a range of financial solutions to help businesses manage their online payments efficiently. With its flagship product, Razorpay Payment Gateway, businesses can accept payments via various modes such as UPI, credit and debit cards, net banking, NEFT, digital wallets, and more. The platform also provides features such as payment links, smart collect, subscription billing, and instant refund invoices to make payment processing easier for businesses and their customers.
In addition, Razorpay offers a suite of financial products under RazorpayX Business Banking, including current accounts, payouts, and corporate credit cards. These solutions are designed to help businesses manage their finances effectively, make payments to vendors and employees, and access credit easily.
To reduce the risk of fraud, Razorpay also provides a Thirdwatch AI solution, which uses machine learning algorithms to detect and prevent fraudulent transactions. And to help businesses grow and retain their customers, Razorpay offers affordability suites such as No Cost EMI and Pay Later options, as well as tax payment services.
Overall, Razorpay’s products and services help businesses of all sizes manage their finances efficiently and securely, enabling them to focus on growing their business.
Target Audience of Razorpay
While small and medium-sized businesses are certainly a key target audience for Razorpay, the platform is designed to serve a wide range of businesses across industries.
Razorpay’s payment gateway services can be used by businesses of all sizes, from startups to large enterprises, that want to accept online payments securely and easily. The platform’s financial solutions, such as RazorpayX Business Banking, are designed to meet the needs of businesses that require advanced financial management tools, including payouts, corporate credit cards, and current accounts.
In addition, Razorpay’s affordability suites, smart collect, and subscription billing features are designed to help businesses retain their customers by providing flexible payment options and reducing payment-related friction.
Razorpay Financials
Business Model of Razorpay
Razorpay’s business model is based on providing online payment gateway services to businesses and charging a fee for every transaction processed through its platform. The company offers two plans to its clients – the Standard Plan and the Enterprise Plan.
Under the Standard Plan, there is no annual maintenance fee, but a fee is charged for every transaction processed through Razorpay’s platform, with the charge being 2-3% per transaction. This plan is suitable for startups, and small and medium-sized businesses.
The Enterprise Plan, on the other hand, is customized to meet the specific needs of large enterprises and is priced accordingly. This plan is favored by big companies like Airtel, BYJU’S, etc. who are clients of Razorpay.
Apart from transaction fees, Razorpay also generates revenue from its financial solutions like RazorpayX Business Banking Hub, which offers advanced financial management tools to businesses, including payouts, corporate credit cards, and current accounts.
Overall, Razorpay’s business model is based on providing reliable and secure payment gateway services to businesses and generating revenue through transaction fees and financial solutions.
The unique aspects of Razorpay’s business model are as follows:
All modes of payment accepted: Razorpay supports a wide range of payment options including credit cards, debit cards, UPI, internet banking, and phone wallets. This makes it easy for businesses to accept payments from customers through various channels.
Payments in installments: Razorpay offers the option for businesses to allow customers to pay for large orders in installments or EMI with customers having to pay a certain amount in advance. This feature can help increase sales for businesses and make it easier for customers to make larger purchases.
Easy creation of payment links: Razorpay’s free browser extension allows for the easy creation of payment links that can be shared through various online channels such as WhatsApp, Facebook Messenger, and email. This feature can help businesses reach more customers and make the payment process more convenient.
Saved card details: Razorpay allows customers to save their payment details after a transaction, which saves time when using the payment gateway next time. This feature can help increase customer retention and make the payment process more seamless.
Uploading payment link and customer details: Businesses can create and share payment links for any amount of their customers by uploading a .csv or .xlsx file with payment and customer details. This feature eliminates the need for manual data entry and reduces the risk of errors.
Conclusion
In conclusion, Razorpay has established itself as a reliable and trusted converged payments solution company in India. Its business model revolves around providing secure and hassle-free payment gateway services to businesses and generating revenue through transaction fees and financial solutions.
The company’s impressive growth and success are reflected in its client base, which includes well-known names such as Swiggy, CRED, and more. Razorpay’s ability to raise significant funds and its reputation as a safe payment gateway have contributed to its ongoing success and position as a leader in India’s digital payments industry.
FAQs
What is Razorpay?
Razorpay is a leading payment gateway in India that enables businesses to accept online payments via credit/debit cards, net banking, UPI, and other popular payment methods.
Who is the target audience of Razorpay?
While small and medium-sized businesses are certainly a key target audience for Razorpay, the platform is designed to serve a wide range of businesses across industries.
What makes Razorpay’s business model unique?
The unique aspects of Razorpay’s business model are: all modes of payment accepted; payments in installments; Easy creation of payment links, Saved card details, and uploaded payment links and customer details.
Fintech, short for financial technology, has become a crucial part of the global economy., all financial tasks were completed through paperwork only, as a paper-based medium was considered to be the safest. But with the development of technology, the internet has emerged as the preferred platform for financial transactions.
It is essentially an economic industry composed of companies that use technology to make financial services more efficient. They are used mainly by individuals to help in mobile payments, insurance, cryptocurrency and blockchain technology, stock trading, digital lending and credit, budgeting and much more. Tech-focused startups and similar new market entrants are disrupting the way in which the financial services industry conducts its operations.
India has the world’s second-biggest fintech hub with more than 2,565 startups operating currently, there were only 737 in 2014. India’s largest share from fintech startups is through ‘payments’ and is followed by lending, wealth tech, personal finance, insurtech, regtech and others.
Let’s look at the list of the top fintech companies in India.
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Paytm was founded in 2010 and is India’s largest payment company that offers consumers multi-source and multi-destination payment solutions. They allow consumers to make payments from any bank account to any other bank account free of cost, i.e., 0% fee charges. Over 8 million merchants have availed its comprehensive payment solutions.
Paytm was founded by Vijay Shekhar Sharma and is owned by One97 Communications and is licensed by RBI. The Paytm app allows users to shop for both physical and digital goods, and also pay for DTH plans, bill payments, and mobile recharges.
The company partnered with Alibaba’s cloud computing arm – ‘AliCloud’ to expand its payment network on a global scale. They have investors like Berkshire Hathaway, SoftBank Group, and MediaTek and even raised an undisclosed amount from Ratan Tata in March 2015. It is arguably the biggest fintech startup in India.
2. Razorpay
Founder: Shashank Kumar, Harshil Mathur
Founded: 2013
Razorpay Logo
Founded in Bangalore, Razorpay focuses on the payment needs of startups and enterprises. With Razorpay, merchants can easily accept, process, and disburse money to and from their dealers. It was founded in 2014 by Harshil Mathur and Shashank Kumar.
Thousands of clients use its service as it allows an online business to accept, process, and distribute digital payments through various modes like debit cards, credit cards, net banking, UPI, and prepaid digital wallets. It is one of the biggest fintech companies in Bangalore.
3. Upstox
Founder: Ravi Kumar, Kavitha Subramanian and Shrini Viswanath
Founded: 2009
Upstox Logo
Upstox provides financial services such as investments in stocks, mutual funds, derivatives, commodities, ETFs, and digital gold. It ensures full transparency in pricing by offering zero brokerage for equity trades and up to INR 20 per order for intraday, commodities, and currencies.
The founders, Ravi Kumar, Kavita Subramanian, and Srini Vishwanath conceived this idea of making trading and investing easier and cheaper and created Upstox for fellow young Indians. The Mumbai-based company is backed by industry giants like Tiger Global and Ratan Tata and currently has more than 250 employees and the fintech is striving to make trading a second nature for its users.
4. Cred
Founder: Kunal Shah
Founded: 2018
Cred Logo
Cred is a fintech startup founded by Kunal Shah, the founder of FreeCharge. The app aims to make paying credit card bills simpler and rewards you for paying them on time. The app asks for your phone number to check your credit score with Cibil, CRIF and Experian.
5. ETMoney
Founder: Mukesh P Kalra
Founded: 2005
ETMoney Logo
ETMoney is a full-stack investment platform with a wide range of products in the domains of investments, credit cards and loans, insurance, and financial tools. It aims to simplify the financial journey of retail customers.
ETMoney was founded by Mukesh Kalra in 2015. A passionate company that indulges in personal finance, has become the first fintech company in India to introduce Aadhar-based SIP payments. With more than 100 crore bank accounts linked to Aadhar, the company plans to simplify installment payments with Aadhar OTP verifications.
The company has also partnered with Google Pay for a simplified way to invest in Mutual Funds and National Pension System.
Sampad Swain, Akash Gehani and Aditya Sengupta co-founded Instamojo in September 2012. Instamojo started as a solution provider of digital payments which now has progressively grown into a robust online platform for enterprises like micro, small, and medium so that they start, manage, and grow their businesses online.
MojoCapital from Instamojo helps disperse bite-sized short-term credit loans which are worth around $2 million. MojoCapital caters primarily to its merchants on a monthly basis, and it has shown a projected growth of 25% on the month on month basis.
PolicyBazaar is an online insurance aggregator for comparative analysis of products that are offered by various insurers using parameters like price, quality, and key benefits. It helps users compare insurance policies and assists them in selecting the best or the most relevant policy that can be purchased online or offline.
PolicyBazaar was founded by Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar in June 2008 in Gurugram. They have raised over $650 million as of 2020. The online platform began as a price-comparison website and an information portal for learning about insurance and related programs; it then expanded to become a marketplace for insurance policies.
PolicyBazaar has tied up with insurance brokers which helps it procure information such as price, benefit, insurance cover, etc. directly from the insurers for the customer to compare. They do not charge anything from the customer for their service. The revenue for the company is generated from the fees charged for the marketing and advertisement stints done by insurance companies on its platform.
MobiKwik is an Indian fintech company that was founded in 2009 by Bipin Preet Singh and Upasana Taku. It is headquartered in Gurugram. MobiKwik is a digital wallet service provider that offers services mobile and online payments, phone and DTH recharge, mobile transfers, online shopping and a lot more.
It allows users to store up to INR 50,000 in a MobiKwik wallet that can be used to recharge mobile, pay bills, and shop across various channels. Their users can also use the partial payment feature for ticket reservations and cash pick-up for bus tickets booking.
MobiKwik’s investors include Sequoia Capital, NET1, GMO Venture Partners to name a few. Post demonetization, MobiKwik has made it free to transfer money from your wallet to your bank account.
Before demonetization, they used to charge 4% for a non-KYC compliant user and 1% fee for a KYC (know your customer) compliant user. They have over 100 million users across India and many more are being added. Non-KYC compliant users can transfer from INR 1000 to INR 20,000 to their bank account. But once your KYC is done, you can store upto INR 1,00,000 in your MobiKwik wallet.
9. ZestMoney
Founders: Lizzie Chapman, Priya Sharma and Ashish Anantharaman
Founded: 2015
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Do you want to buy something offline on EMI but don’t own a credit card? Zest Money has a buy now pay later policy and offers an EMI option that you can use to purchase things online or offline from its partner merchants. It is another Bangalore-based startup founded by Lizzie Chapman, Ashish Anantharaman, and Priya Sharma.
10. Lendingkart
Founder: Harshvardhan Lunia and Mukul Sachan
Founded: 2014
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Lendingkart is an online financing company founded by Harshvardhan Lunia and Mukul Sachan in 2014. Lendingkartprovides loans for working capital needs for SMEs (small and medium-sized enterprises); these loans are quick and collateral-free with minimal paperwork.
The company works across1300 cities and has disbused loans over INR 3,500+ crores till date (2020). Aditya Birla Capital, Saama Capital, Mayfield Fund, Bertelsmann India Investments (BII), and Darrin Capital Management are some of its prominent funding partners. In March 2016, Lendingkart entered into a strategic partnership with Mahindra’s SmartShift – a digitally enabled aggregator for cargo owners and transporters.
Lendingkart has access to a huge amount of data from data partners dispersed across the country. These data partners provide Lendingkart with diverse information about the vendor: educational qualification, family background, reputation, competitiveness in the market, etc.
Refrens is fairly new to the fintech industry in India. It was founded by Naman Sarawagi and Mohit Jain in 2019. Refrens provides a payment gateway system for freelancers to send and receive payments smoothly.
It offers free invoicing, payments, and expense management systems. For freelancers, it becomes easy to enable options like adding payment methods, offering discounts, etc. for their clients. It is so easy to use that it is possible to create an invoice in just 30 seconds.
Pine Labs is a Gurugram-based fintech platform that provides PoS (Point of Sale) software solutions for offline retailers and brands. It was founded in 1998 by Lokvir Kapoor, Rajul Garg and Tarun Upaday.
They initially offered a smart card-based payment and loyalty solution for the petroleum sector. It then introduced a PoS machine for offline merchants. Its ‘Plutus PoS’ solution is a cloud-based software that can be integrated with a generic POS terminal to allow retailers to accept debit and credit cards, e-wallets, QR codes, and UPI-based payments.
Pine Labs’ offerings include marketing tools, reporting and analytics, payment gateway API solutions, mobile payment solutions (via myPlutus), loyalty and gift card programs, value-added solutions like EMIs, discounts, pay by points, loyalty solutions, e-wallets and others.
The mobile app of Pine Labs is available on Android and iOS and can be used for targeted promotions, dynamic currency conversion and more. In 2017, Pine Labs launched its complete suite of services in Southeast Asian markets; it is present in Malaysia.
13. MoneyTap
Founders: Bala Parthasarathy, Kunal Varma, and Anuj Kacker
Founded: 2015
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MoneyTap is India’s first app-based credit line. It provides you credit and you can repay your credit amount in flexible EMIs of 2 to 36 months. MoneyTap aims to make credit accessible to the Indians who use internet banking.
It uses customers’ details to evaluate the user’s eligibility and decide the credit limit. MoneyTap was launched in 2015 by Bala Parthasarathy, Kunal Verma, and Anuj Kacker.
14. Khatabook
Founders: Ravish Naresh, Dhanesh Kumar, and Jaideep Poonia
Founded: 2017
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Founded in October 2018, by Ashish Sonone, Dhanesh Kumar, Vaibhav Kalpe, Jaideep Poonia, and Ravish Naresh, Khatabook is the world’s fastest-growing SaaS company. It has become India’s leading business management app for MSMEs with 20M+ downloads in a remarkably short period of time.
This Bangalore-based mobile app service shares WhatsApp and SMS reminders to users when money is due to be paid or collected. Khatabook enables micro, small and medium merchants to track business transactions safely and securely.
Capital Float is a Bangalore-based digital finance company founded by Sashank Rishyasringa and Gaurav Hinduja that provides working capital loans and term loans to small businesses via a technology-led loan origination and credit underwriting platform.
Capital Float offers loans ranging from INR 1 lakh–INR 1 crore with terms between 1 – 12 months. The offered loans are based on cash flows, expected receivables, financials, CIBIL scores, and bank statements. Individuals can apply online for the loan and once the loan is approved, it is disbursed to their bank account.
If you have ordered from well-reputed corporate customers, you can borrow up to 80% of the value of an outstanding invoice, and repay only after you receive payment from your customer. The company has partnered with startups like Shopclues, Paytm, and Uber.
16. Shiksha Finance
Founders: V L Ramakrishnan and Jacob Abraham
Founded: 2014
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Many individuals have the potential to become great students but the exorbitant tuition fees of educational institutions hinder them from pursuing education. Shiksha Finance provides short-term loans to students for their fees. The loan ranges from INR 10,000-INR to 30,050 and must be paid within 6-10 months. For a private school or college, the loan can range from INR 1 lakh-INR 73.5 lakh and can be paid within 6 months to 5 years. It was founded by Jacob Abraham in 2014.
Founded by Chandu Sohoni and Poorna Nayak in 2013, Amigobulls provides solutions to wealth management-related problems. You can get the daily stock analysis in the form of short, personalized videos.
The personalized videos are created automatically using Amigobulls’ technology; thousands of videos can be created in a few minutes. This fintech company offers investment advice and news to stock market investors through a patent-pending video generation technology.
18. KredX
Founders: Manish Kumar and Anurag Jain
Founded: 2015
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KredX isIndia’s first invoice discounting marketplace platform. It helps businesses gain quick access to working capital in around 24 to 72 hours by selling their unpaid receivables while providing investors with an opportunity to earn low-risk high returns through a unique short-term investment.
Founded by Anurag Jain, the company provides a technological platform that connects investors, both institutional and individual, with high-growth businesses looking for working capital through invoice discounting.
KredX’s objective is to facilitate short-term working capital to the SMEs raised against blue-chip companies to a network of financiers. KredX’s recent acquisition of Hummingbill, a New York-based startup – to strengthen technological capability has assisted the former to progress its growth curve in the lending space.
Founded by Ranjit Punja, Gowri Mukherjee and Rajasundaram Sudarshan in 2011, Credit Mantri is a credit facilitator which uses data and technology to help people make better financial decisions. It provides an Equifax credit score that is one of the four credit bureaus authorized in India by the RBI.
Anyone who needs credit can create a credit profile on CreditMantri’s website to apply for loans and credit card offers based on his or her credit profile. The Equifax score is used by CreditMantri to analyse the individual’s credit profile
Headquartered in Mumbai, Mswipe provides software solutions and payment devices to merchants. Mswipe works with all kinds of bank accounts; hence, merchants don’t have to open a new account for their devices. The company was founded in 2011 by Manish Patel.
21. Financial Software Systems (FSS)
Founders: Nagaraj Mylandla
Founded: 1991
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Financial Software Systems Pvt. Ltd. was founded in 1991 and is a Chennai-based fintech venture that provides electronic payment and financial transaction processing solutions and services globally. Financial Software Systems records all of the financial activities within a business organization.
Its products include card management, merchant management, mobile payments, financial inclusion, messaging middleware, and value-added solutions. FSS also offers software services that include systems integration, offshore development, project management and implementation, and 24/7 global helpdesk support services.
22. BankBazaar
Founder: Rati Rajkumar
Founded: 2008
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BankBazaar is a Chennai-based online financial platform founded in 2008 by Adhil Shetty, Arjun Shetty, and Rati Shetty for product distribution and comparison analysis. It enables users to buy personal loans, home loans, auto loans, and education loans.
BankBazaar also offers debit and credit cards, life insurance, health insurance, auto insurance, travel insurance products, mutual funds, fixed deposits, and savings accounts. With multiple offers from multiple banks, you can compare offers and check your eligibility in minutes.
Users only need to provide basic details to apply for a product online and can track its status. BankBazaar’s revenue comes from application-based commissions from banks. Customers don’t need to pay any charge.
23. Active.Ai
Founder: Ravi Shankar, Parikshit Paspulati, Shankar Narayanan
Founded: 2016
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Active.Ai provides chatbot solutions to all types of banks and other financial institutions. Although it is a Singapore-based startup, it has a lab in Banglore and was founded by 3 Indians – Ravishankar, Shankar Narayan, and Parikshit Paspulati in 2016. The main focus of Active.Ai is on the banking sector.
24. Finly
Founder: Vivek Alike Ganapathy
Founded: 2017
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Finly lets companies and startups analyse their expenses. Besides expense management, Finly also eases the process of fund disbursement, vendor payment, and helps with the automation of collection. It builds financial software products to save the companies money and time. It was founded in 2015 by Vivek AG.
25. Ezetap
Founder: Byas Nambisan
Founded: 2011
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Ezetap, co-founded by Abhijit (Bobby) Bose and Bhaktha Keshvachar, provides businesses and financial institutions with smart technological transaction solutions. The Company develops and commercializes a mobile point of sale (PoS) solution that allows mobile devices to be converted into PoS terminals by connecting a card-reader to the headphone jack of the device.
Financepeer helps to pay the entire year fees upfront to the School in one installment and collects fees in 3 to 12 monthly installments from parents at 0 Interest and 0 Cost. It is a Google incubated School (K-12) Fee Financing Company.Rohit Gajbhiye, Naveesh Reddy, Sunit Gajbhiye and Debi Prasad Baral launched Financepeer in 2017 to cater to an audience that cannot afford to pay the school fees all at once.
Loanwalle.com was founded by Sachin Mittal in 2015. It deals in payday loans which are quick emergency loans disbursed in 30 minutes from the time it is applied for. To fulfill the fast money requirements of the customers, the loan approval process is fully automated and is based on an algorithm that assesses the applicant’s creditworthiness.
28. Money View
Founder: Puneet Agarwal and Sanjay Aggarwal
Founded: 2014
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Money View was launched in 2014 by two IIT friends, Sanjay Aggarwal and Puneet Agarwal. Money View is a loan financer, and also helps in planning overall finances. Itcaters for the user with personal finance management, to keep a check on everyday finances and also provides loans ranging from INR 10,000 to 5,00,000 within a day or less. The application provides the user with a view of their bank balance, income spends, and income dues by pulling from their SMSes.The app runs and is updated even without internet connectivity.
29. Cube Wealth
Founder: Satyen Kothari
Founded: 2016
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Cube Wealth was founded by Satyen Kothari in 2016, who had previously founded Citrus Pay. Cube Wealth provides comprehensive portfolio management solutions to help busy professionals achieve their goals through investments.
The app helps individuals to invest in multiple asset classes including equities, mutual funds, P2P lending, gold, and even charitable investing to build a well-rounded portfolio. It is a subscription-based automated wealth technology application that works on the concept of disciplined long-term wealth creation.
Goal Teller founded by Vivek Banka in 2020 is a financial planning platform that allows users to build their own financial plans. It is a fintech startup in the investment planning space and is operating in the B2C space.
31. Kuants
Founders: Ayush Gangwar, Mohit Bansal
Founded: 2017
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Kuants was founded in the last month of 2017, by Ayush Gangwar and Mohit Bansal. Their inspiration for the startup was to ensure that technology never acts as a barrier to a stock trader while exploring the domain of algorithmic trading. Kuants is a Fintech startup based in Gurugram, making algorithmic trading easy for those who cannot code themselves.
Akshat Saxena, Aurko Bhattacharya and Uday Somayajula are the founders of ePayLater. ePayLater provides credit at the point of sale. It offers a simple checkout experience by providing customers with the ability to conclude a transaction with just one click of a button. It is a ‘Buy Now, Pay Later’ solution through which customers can get access to an instant credit limit to make faster purchases.
PayKun was launched by Nikunj Yadav, Prashant Kambad, Vijay Yadav, Deepak Dabhi and Nirav Solanki, who were five friends from Gujarat. It was founded in the year 2018, with the primary intention to introduce ease and integrity into the online payment system. PayKun is an online payment gateway integrator that allows merchants to integrate any payment gateway they prefer. It is an affordable and secure solution for sellers. And what’s more, it does not require the user to have any technical skills to use it.
PaisaDukan was established by Rajiv M Ranjan in 2017 . It is a P2P platform that acts as a mediator between investors and borrowers. The company serves as a digital marketplace to enable borrowers to meet their financial needs, provide investors with a safer and smarter investment option and aid financial inclusion.
35. Cashfree
Founders: Reeju Datta, Akash Sinha
Founded: 2015
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Cashfree, a full-stack payments solution is incubated and backed by PayPal and YCombinator respectively. Cashfree helps global and Indian businesses collect and disburse payments via 100+ payment methods including MasterCard, Visa, RuPay, UPI, NEFT, IMPS, Paytm, and other wallets.
It also claims of being India’s leading API banking platform. Other than payment gateway products, Cashfree has products such as UPI auto pay, Refunds Suite, Auto collect options and Marketplace settlements. Cashfree has integrated with major platforms such as Shopify, Amazon Pay, PayPal, Google Pay, and Ola Money.
36. CoinDCX
Founders: Sumit Gupta, Neeraj Khandelwal
Founded: 2018
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Founded by IIT Bombay alumni Sumit Gupta and Neeraj Khandelwal in April 2018, CoinDCX is a beginner-friendly crypto exchange platform.Investment in cryptocurrency has been made easy by CoinDCX. The platform also enables users to access a wide range of financial products and services backed by insurance protection.
The crypto platform with 1 lakh active users has a more than $40 million trading volume. Backed by hedge fund giant Polychain Capital, the platform offers crypto transactions at no cost to investors. For those who trade, it charges a fee of 0.1%.
The company recently launched CoinDCX Go. This product runs on the 7M framework which studies and analyses the depths of the crypto market and predicts future threats. On this platform, crypto assets are listed with uncompromising listing criteria. The product accommodates currencies like Bitcoin, Ripple, Ethereum, Tron, Bitcoin Cash, Matic, Litecoin, etc.
Easy Home Finance is a housing finance company that offers home loans through a paperless route. The Mumbai-based company was founded by Rohit Chokhani. It is registered under National Housing Bank Act as a housing finance company and aims to tap the market using a paperless experience.
Its products include home loans, home construction/extension loans, loans against property, and loans through Pradhanmantri Awas Yojana. They also have a pre-approved property database for home options and instant loan approvals.
The company, backed by Harbourfront Group, aims to streamline the onboarding, assessment, and management of home loans through an AI-based lending platform. Easy Home Finances is focused on providing home loans to first-time buyers and women who wish to enter the property market and also targets customers in Tier 2 and Tier 3 cities across India. It is also set to launch a Product-as-a-service (PaaS) with co-lenders and other financing companies.
38. Recko
Founder: Saurya Prakash Sinha
Founded: 2017
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Recko is a Bangalore-based fintech startup that is into the reconciliation of companies. It offers financial services to e-commerce companies, banks, and insurance providers who have huge volumes of transactions. It is a third-party transaction layer that ensures authenticity and transparency in all recorded transactions. Recko’s workings mainly rely on AI models to comprehend and collect data, connecting payment gateways, banks, and customer management systems.
Backed by Prime Ventures Partners and several angels, Recko was founded by Suarya Prakash Sinha and Prashant Borde. The fintech company claims to have reconciled accounts worth $5 billion to date and has integrated with big names in the fintech industry such as Myntra, Pharmeasy, Meesho, Dunzo, Townscript, and Grofers.
39. FypMoney
Founder: Kapil Banwari
Founded: 2021
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Owned by Pockket Payment Technologies Ltd, FypMoney is a platform introduced for financial literacy in teenagers. The platform aims to target the age group 11-19 who comprise 15-20% of smartphone users. In a seed funding round, it has raised $2 million from angel investors including Leberatha Kallath, Mukesh Yadav, and Dinesh Nagpal.
FypMoney takes into consideration the concerns of parents with teenagers and has introduced features like instant pocket money transfers, tracking spending patterns with real-time transaction alerts, and setting transaction limits.
As for teenagers, it is equipped with quick transfer options like UPI, referral bonuses, Fyp Debit card, online investments in Mutual funds, savings, and a social community to interact with FypMoney users. The founder, Kapil Banwari believes that this platform will make teenagers aware of financial aspects, get them into a habit of saving and educate them about personal finance.
40. Avail Finance
Founder: Ankush Aggarwal
Founded: 2017
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Avail Finance is a fintech startup based in Bangalore that exclusively focuses on the blue-collar workforce and aims at introducing credit facilities and financial literacy to them since they’re seldom aware of it. It provides them with a neo-banking platform and includes every individual on a credit hunt, under the financial umbrella.
The startup aims to reach that segment in the financial market that is oblivious to credit card penetration, has no credit history, and has a low to almost zero CIBIL score. The platform offers other financial services including savings, insurance, and investment products. Founded in 2017 by Ankush Agrawal and Tushar Mehndiratta, the startup has raised around INR 85 crore in a funding round led by Alpha wave Incubation.
Upwards is a fintech company that offers personal loans up to INR 2 lakhs within 24 hours to salaried individuals with no credit history and whose earning capacity is at least INR 15000 per month. The fintech has a wide range of personal loans that cover weddings, travel, studies, medical emergency, and home renovation. The company charges an interest rate of 18-32% on its financial products.
The Mumbai-based startup is currently active in more than 30 cities including Tier 2 and Tier 3 towns. Founded in 2017 by alumni of IIT Delhi Abhishek Soni and Nimesh Verma, the company has disbursed INR 4 crore since its year of inception and is 40% of its credit demand coming from smaller towns of Karnataka, Rajasthan, and Tamil Nadu.
KreditBee is a personal loan platform for self-employed and salaried professionals where they can avail of a loan starting from INR 1000 to INR 2 Lakhs with minimal paperwork and tenures from two to fifteen months. It offers loans to even those without a credit history. It hosts multiple non-banking financial companies (NBFC) that are licensed by the Reserve Bank of India. This includes KrazyBee Services Pvt Ltd which is a non-deposit financial institution that offers innovative technology and availability of credit.
Founded in May 2018 by a bunch of intellectuals from various IITs across India, KreditBee currently has more than 1200 employees and a user base of 20 million. Through its holding entity Finnov, KreditBee has recently raised $70 million which it says will be utilized towards scaling up the lending portfolio beyond personal loans.
43. Finin
Founders: Suman Gandham and Sudheer Maram
Founded: 2019
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Finin is a fintech startup that has launched itself as a “neobank”, in partnership with SBM bank, a wholly-owned subsidiary of the State Bank of Mauritius in India. It is a platform that focuses on saving rather than lending. The “neobank” has an AI-driven experience for its users which gets insights from your spend-save behaviour. It can be linked to all your bank accounts and keeps a track of your transactions and budgets. Users also receive customized investment options and hyper-personal financial tips that take into consideration your pay cheque, lifestyle, marital status, and more.
Finin users have to rely on SBM branch networks for banking activities and the physical branches which are currently operating in Mumbai, Chennai, Bengaluru, and Hyderabad. Going against the flow, founder and CEO Suman Gandham believes Finin will make more revenue from wealth management services rather than lending services.
Founders: Samant Sikka, Sanjeev Sharma and Dhananjay Singh
Founded: 2016
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Sqrrl is an investment and wealth management platform for young individuals and professionals. The company is registered under AMFI and SEBI and is available in 9 Indian languages. It encourages Indians to save and invest better while guiding them towards building an investment portfolio with baby steps.
The company uses machine learning, AI, and data science to offer one-on-one assistance encouraging users to invest in high-performing mutual funds based on the risks, their goals, and requirements.
Based in Gurgaon, Haryana, Sqrrl has a team of 40 people including the founders namely Dhananjay Singh, Sanjeev Sharma, and Samant Sikka.
45. Moneyfront
Founders: Mohit Gang, Anil Bang, and Puneet Mehta
Founded: 2015
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Moneyfront is a wealth management platform that allows you to invest in funds and keep a track of them. While many other platforms offer the same, Moneyfront uses a comprehensive database, news, and statistics and lays out the best options for its users. It provides model portfolios so that you have more options and you can measure your risk appetite and choose what’s best suited for your goals.
The fintech company tied hands with Niyogin Fintech, which provides collateral-free credit to MSMEs. Reportedly, Niyogin has acquired a 50.1% stake in Moneyfront for INR 12 crore.
Founders: Archit Gupta, Srivatsan Chari, Ankit Solanki, Raja Ram Gupta
Founded: 2011
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ClearTax is a financial services platform that helps individuals, tax experts, SMEs, and enterprises streamline income tax returns, GST, Invoicing, Billing solutions, and more. Cleartax helps businesses save 2-7% of their net GST every month while individuals have saved up to INR 86000 by filing their tax returns through them.
The company recently launched a GST-compliant billing and e-invoicing product called ClearOne. ClearOne is an easy, affordable, and compliance-proof solution for all the challenges faced by SMEs. Founded by Archit Gupta, Srivatsan Chari, and Ankit Solanki, ClearTax is helping millennials pay their own taxes in a simple and hassle-free manner.
47. Groww
Founders: Lalit Keshre, Harsh Jain
Founded: 2016
Groww has become the unicorn in the fintech industry by raising $83 million in a funding round led by Tiger Global. The company has raised $140 million as capital so far. With a freshly acquired unicorn status, Groww is an investment platform that allows individuals to invest and trade in stocks, mutual funds, US stocks, and Gold. it also has fixed deposit options for conventional investors.
Backed by a huge force of investors such as Sequoia Capital India, Ribbit Capital, Y Combinator, Kauffman Fellows, Propel Venture Partners, and Kairos, Groww plans to deploy its funding into introducing financial educational content for its 1.5 crore registered users.
LoanTap is an NBFC registered under RBI that offers flexible personal loans which are EMI-free (partial repayments of principal amounts), and allows personal overdraft and debt consolidation loans that are best suited for your lifestyle and requirements. Whether it’s an upcoming holiday, a wedding, a loan repayment, a new vehicle purchase, or a business loan, LoanTap covers it all.
The Pune-based company recently tied hands with the Bank of Maharashtra into a co-lending agreement. This agreement would help the bank meet its priority lending target through a digital lending platform like LoanTap by avoiding visits to the branch and easier loan disbursals.
49. RevFin
Founder: Sameer Aggarwal
Founded: 2018
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Founded by an alumnus of IIT Kharagpur, Sameer Agarwal, RevFin is a digital lending platform that offers loans through its own NBFC. Its products include regular personal loans and Revloans, which is an unsecured credit limit that a customer can use at any time as per their convenience. RevFin has currently financed E-Rickshaws in several towns across India which include Kolkata, Jhansi, Dehradun, Hisar, and Delhi.
Headquartered in Delhi, RevFin was founded in 2018 and has captured the sector of vehicle loans for three-wheelers and two-wheelers. The fintech is backed by several angel investors including Harsh Jain, Anil Goyal, Anil Lamba, and Krishna B Singh.
50. PayU
Founders: Jose Velez, Martin Schrimpff, Arjan Bakker, Grzegorz Brochocki, Nitin Gupta, Shailaz Nag
Founded: 2002
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PayU is one of the best fintech companies in India that provides a payment gateway and payment solutions for online merchants. The platform provides a seamless experience when users check out a particular website or mobile app. It integrates various gateways such as net banking, Visa and MasterCard, UPI, and wallets.
PayU has integrated with giants like Netflix, Myntra, and Cred with unique payment solutions where customers can choose any payment option on any platform or website. It also enables customers to accept payments outside India from 100-plus countries.
PayU India is the flagship company of Naspers Group, based in London. It has also launched an alternate lending platform called LazyPay to offer credit solutions such as Small ticket credit (Buy now pay later), App-based Loans, and Point of sale credit (Merchant EMI).
Conclusion
Startups work hard on their products, marketing, and other business activities but forget about one crucial aspect: finance. Managing one’s finances is of utmost importance. Business is all about money, you can’t run a business if you don’t think about money. This list of fintech startups in India should help you understand the advancements in the world of Finance and give you an insight into India’s biggest and top fintech to keep an eye out for.
There are more than 2000 fintech startups in India as of 2022.
What are some of the biggest fintech startups in India?
Some of the biggest fintech startups in India are,
Paytm
Cred
Razorpay
Instamojo
Lendingkart
MoneyView
Paykun
PaisaDukan
Mswipe
Kredx
What is FinTech Company India?
Financial technology is abbreviated to FinTech and it comprises companies that use technology to offer financial services. It has emerged as a relatively new industry in India.
What are examples of FinTech?
Some examples of FinTech are mobile banking, mobile payments, trading, cryptocurrency, insurance, trading, and lending to name a few.
The world we live in is called digital for a reason, from Artificial Intelligence to social media; everything is possible because of Technological Advancement. These technologies have created such a way that there is hardly anyone who is not connected to them.
With new technologies getting invented every day, digital means of payment have become the new normal in this decade. Now, banking is a very significant part of our life. Thanks to banking we are enabled to have our money saved in a bank account and it provides safety to that amount. Plus we get our salary credited there. Not only that, banks also lent money to individuals and businesses.
A couple of years ago, using a virtual bank seemed like a scene from a sci-fi movie but now, it’s a reality. The definition of payment has changed; with the help of technology transferring money from one account to another is possible through the internet itself. Thus, the way of banking has also changed; we can get the facility of a bank without a requirement of one. In India, Fintech platforms are now setting their eyes on a certain industry and that is called the Neobanks.
“Banking is Necessary, Banks are Not.”
― Bill Gates
In this article we will find out about the Neobank industry in India and its future, So let’s dive in.
Neobank is a bank that is digital and doesn’t have any branches physically. It is completely online and they entirely focus on providing every facility of a bank like money transfers, financial solutions, and money lending through mobile phones.
In India, Neobanks doesn’t own bank licenses and hence rely on bank partners for providing banking services to its customers.
With the increase in the process of online banking and the acceptance of digital payments, Neobank is becoming a new trend in the country. These new-age banks provide good customer service and are very much customer-centric. Neobanks strive to offer a personalized banking experience to their customers based on analysis of customer data and behavior.
Being fully digital, Neobanks saves the costs of maintaining physical branches which lets them invest more in enhancing customer experience, and helps them maintain better margins.
Not just retail customers, Neobanks also has a lot on offer for small and medium businesses. From payment gateways to billing software, Neo Banks helps businesses manage their finances better.
Advantages Of Neobanking
People prefer Neobanking for various reasons. Some significant advantages of neo bank are –
Creating an account in neobank is much easier than creating a physical bank account. Just following some simple steps one can create their account from anywhere and anytime through their mobile.
International payments are possible through neobank card, while a traditional bank debit card doesn’t provide that service initially, we have to request an international debit card for global transactions.
Neobanks are user-friendly and are designed to fulfill the demands of the customers. Neobank apps are very easy to use for customers
Every transaction made through Neobanks is updated immediately on the app.
Covid-19 played a huge role in intensifying the digital banking methods amongst the customers. As per Statista, the number of users in the Indian Neobanking segment is expected to grow to 17.11 million by 2026. The increasing popularity has caused an increased number of neobanks in the country. Currently, there are around 27 neobanks in India. We have listed below the top 5 Neobanks of India.
It is considered one of the largest neo banking platforms. From small to big businesses and individuals enjoy Instantpay’s neobank service. Founded by Shailendra Agarwal, this neobank process millions of transaction per day. It is easy to use and can be operated from mobile and the web. Instantpay’s partners are ICICI Bank, Axis Bank, IndusInd Bank, and Yes Bank.
FamPay
FamPay Website
This neo banking app is specially made for teenagers. Of course, supervision from their guardians is to be done. Their main aim is to make teenagers empowered and independent by encouraging them to make decisions regarding their spending. Fampay offers a numberless prepaid card that lets teenagers and minors make payments both online and offline.
This app is founded by Kush Taneja and Sambhav Jain in the year 2019 and is used for basic payment for Zomato, Netflix, Swiggy Amazon, and many more. Its banking partner is IDFC Bank.
Jupiter
Jupiter Website
This neobank service was founded in the year 2019 by Jitendra Gupta and Vishnu Jerome. This neobank provides the customer with an option to monitor their money spending pattern and doesn’t have any hidden fees. It does have a calculator that lets the customers watch on their financial health. Plus it gives out lots of rewards as well. Jupiter’s banking partner is Federal Bank.
Open
Open Website
This neobank helps businesses say goodbye to all those hassles while opening a bank account. This was founded by Ajeesh Axhuthan, Anish Achuthan, Deena Jacon, and Mabel Chacko in the year 2017. Open helps startups and businesses with banking, payments, and accounting. It also gives out a business credit card.
Razorpay
Razorpay Website
Razorpay is the first neobank to enter the club of Unicorn. Razorpay is designed for businesses. It was founded in 2014 by Harshil Mathur and Shashank Kumar and has served over 10 thousand businesses.
Razorpay’s product suite makes accepting, processing, and disbursing payments easy for businesses. Razorpay offers RazorpayX, a service through which registered businesses can not only easily open current accounts, but can also automate bank transfers, get quick access to capital, do payroll automation, share invoices with customers, and pay taxes and also view financial reports from a single dashboard. Razorpay’s current account gives out features like chequebooks, debit cards, and account statements. Razorpay’s banking partner is RBL Bank.
However, one can take the Razorpay advantage even if his business is unregistered. Razorpay lets its users access all the payment modes like credit and debit cards, net banking, UPI, and Mobile Wallet. Freelancers, small businesses, and individual service providers can easily collect payment via Razorpay by integrating Razorpay into their website or app. They can also create payment pages, payment links, payment buttons, QR codes, collect recurring payments, make vendor payments, generate invoices and do much more with Razorpay.
In 2019 Neobanks raised $90 million in India. People are getting more familiar with digital financial services and with all those facilities prefer them over others as well. Although RBI doesn’t provide licenses to virtual banks, they collaborate with physical banks and let the customers use their services. In the last three years, India witnessed a steep rise of neobanks and with the trend, it is only going to rise in the coming years.
Conclusion
The world is witnessing a change that is revolutionary, everything is turning digitalized. It wouldn’t be wrong to say that the entire world is being ruled by the devices that we carry in our pockets.
With almost every service available digitally, the tech-savvy generation is indulging themselves in it enthusiastically plus the older generation is being a part of this change.
Banking, which is one of the most important parts of our lives, is now available without physical branches, thus this boon of technological advancement is making life a lot easier.
FAQ
What is neobank?
A neobank is a virtual bank that operates entirely online from customer onboarding, to availing the simplest banking services.
Which is the best neobank in India?
RazorpayX, Fampay, Jupiter and Instantpay are some of the top neobanks in India.
