Online payment has become the new normal. It has made the complex process of money transfer and payment easy. The primary name that comes to our mind when thinking about an online payment solution is Razorpay. It is an Indian-based online payment solution that helps businesses to accept payments online with ease. However, the journey of Razorpay’s success story is indeed fascinating. But before we dive into the success story, let us learn what Razorpay is all about.
What is Razorpay?
Razorpay is an online money payment solution that offers safe and secure payment options. Moreover, it gives access to JioMoney, Mobikwik, Airtel Money, and Ola Money. Razorpay’s success story began in 2014 when two IIT Roorkee alumni, Shashank Kumar and Harshil Mathur, set up an online payment solution to solve the common problem that they figured out through one of their conversations which is “how to accept payments online.” They discussed further on the topic and decided to create a solution for the same. This is how Razorpay came into existence.
However, setting up just an online payment was not enough. They wanted to build a flexible payment option with low fees. Furthermore, they successfully revolutionised the existing merchant fee with 1.99% for debit cards and 2.99% for credit cards. They also launched merchant services like integration with UPI, invoicing, etc., to help entrepreneurs with financial support.
How did Razorpay reach the peak of success?
The business model of Razorpay is one of the most important factors that has helped the online payment solution reach its peak of success. As per the model, Razorpay charges 0.25 to 0.5% fees for each of its subscriptions through their transaction. This makes the payment gateway more attractive to the merchants.
Recently, when the pandemic led to cut-off salaries and constant layoffs, Razorpay found the opportunity for digital transformation. It narrowed down its focus on customer acquisition. This includes e-commerce, ed-tech, gaming, etc., as well as those B2B startups that were supporting businesses in digitising.
In 2017, Razorpay launched four products: route, brilliant collection, subscriptions, and Invoices that enable businesses to manage multiple aspects of money movement. It also provides its payment gateway to five merchants like Airtel, Ola, Zomato, etc. With its leading investors like Rabbit capital, Tiger Global, and Singapore sovereign wealth fund becoming its revenue source, Razorpay is India’s most preferred payment platform.
Razorpay is also known to have entered the SME lending space by introducing subsidiary venture Razorpay capital that intends to solve cash flow challenges in Small and Medium enterprises. Razorpay operates with the goal of “Pursuit for success.” Moreover, they are working on climbing the ladder of success and transforming the future of digital transactions by strengthening their team.
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Overall, Razorpay continues to create success stories with plans to make its space in the South East-Asian market. It also is looking forward to acquiring and investing in Fintech, B2B SaaS space. So we can conclude that the Razorpay success story continues.