Launched in 2014, Razorpay is an online payment solution that offers a safe and easy way for businesses to accept, process, and disburse payments. The platform helps business entities gain access to all the online payment methods like UPI, credit and debit cards, net banking, and other wallets in India like Airtel Money, Ola Money, JioMoney, PayZapp, Freecharge and MobiKwik.
Founders
Razorpay was founded by two IIT Roorkee graduates Harshil Mathur and Shashank Kumar.
Harshil Mathur
Harshil Mathur is known as the CEO and Co-founder of Razorpay. He graduated from IIT Roorkee and had been a member of SDSLabs. Harshil was also a part of YC’s W15 batch. He worked as a Wireline Field Engineer at Schlumberger for less than a year and then decided to found Razorpay in 2014.
Shashank Kumar
The CTO and Co-founder of Razorpay Shashank Kumar graduated with a Computer Science degree from IIT Roorkee. He also attended Y Combinator’s startup program in 2015. Shashank took up a summer internship at the University of Minnesota and later joined another internship as a Software Development Engineer at Microsoft. After completing 3 months as a Microsoft Intern, he joined SDSLabs as a Vice President before joining Microsoft as a Software Development Engineer. Shashank worked for less than two years at Microsoft and then decided to quit his job and co-founded Razorpay.
Origin of Razorpay
The journey of establishing Razorpay started in 2014 when two IIT Roorkee graduates Harshil Mathur ( CEO) and Shashank Kumar ( CTO and Managing Director) were working on a crowdfunding platform. While doing this, they noticed the gloomy state of the Online Payment industry in India and understand the need of online Payment for SMEs and startups. Thus, they introduced Razorpay to fix this issue.
Razorpay aimed to provide a simple payment gateway for SMEs and startups. After conducting market surveys in the initial days and getting positive customer responses, they decided to work full-time on Razorpay.
They also took part in the winter batch of Y Combinator’s startup program in 2015. Both quit their respective jobs after being supported by Startup Oasis, jointly set up by Rajasthan Industrial Investment Corporation and IIM Ahmedabad’s Centre of Innovation Incubation and Entrepreneurship. Razorpay is the second India-focused company to be chosen by Y Combinator’s startup program.
Business Model
Razorpay makes money by charging transaction fees for every transaction processed through its payment gateway. You have to pay the transaction fee according to the method of payment and volume of Transactions.
Domestic Transactions
Domestic Transaction charges are 2.36% (2% Transaction charge + 0.36% GST) per transaction.
International Transactions
For International Transactions, charges are 3.54% (3% Transaction charge + 0.54% GST).
Credit Card
The transaction fee for Credit Cards is 2.99%.
Debit Card
The transaction fee for a Debit card is 1.99%.
Funding and Investors
The platform obtained $100 million in a funding round by Singapore’s Sovereign wealth fund GIC and Sequoia India in October 2020. With this funding, the platform has joined the exclusive club of Unicorn Startups in India.
Razorpay raised $375 million in a Series F funding round in December 2021.
The leading investors of Razorpay include Tiger Global, Ribbit Capital, Singapore’s GIC, Matrix Partners, Sequoia India, and Y Combinator.
The valuation of Razorpay was $7.5 billion on December 20, 2021.
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Awards and Achievements
- Razorpay made it in Nasscom’s “League of 10” companies in 2016
- In 2017, the co-founders of Razorpay were featured in Forbes 30 under 30.
- Razorpay was a runner-up for “Financial Express Software Product of the Year” in 2017.
- Awarded by PYMNTS.com as “The Best POS Innovation” in 2017.
- In 2018, awarded as “Best Digital Payment Facilitator” by IAMAI.
- In 2022, Razorpay received the “Startup of the Year” award at the ET Startup Awards.
- The Co-founders Harshil Mathur and Shashank Kumar were featured in Fortune India 40 under 40 list.
- Razorpay won the “Best Fintech Company” award at Business Today and KPMG’s Awards 2024.
Frequently Asked Questions (FAQs)
1- What is the revenue of Razorpay?
In FY22, the revenue of Razorpay was around 14.81 billion Indian Rupees. The total revenue of Razorpay was around 22.79 billion Indian Rupees in the financial year 2023. Which was a 53% increase from the previous year’s revenue.
2- When was Razorpay founded?
Razorpay was founded in 2014 by two IIT Roorkee graduates Shashank Kumar and Harshil Mathur.
