India`s Payments Solution Company ‘Razorpay’ – From a Fintech Startup to a Unicorn

Case Code: LDEN168
Case Length: 9 Pages
Period: -
Pub Date: 2021
Teaching Note: Available
Price: Rs.300
Organization : Razorpay Software Private Limited
Industry : Cards & Payments
Countries : India
Themes: FinTech, Banks and Banking, Technology in Banking, Entrepreneurship
Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Abstract Case Intro 1 Case Intro 2 Excerpts


Fintech in India

India had launched its real-time payments systems, the Immediate Payment Service (IMPS), in 2010 and the Unified Payments Interface (UPI) in 2016. The fintech industry in India comprised mainly four segments – Payments, Lending, WealthTech, and InsureTech..

Challenges Faced

The fintech firms faced numerous challenges in their journey to reconstruct payments and financial services and also ensure adoption of the digital platform. To ensure seamless services and provide better services to the consumer, most of the banks had risen to the occasion and started collaborations with various fintech companies. The collaboration between the banks and the fintech firms had given rise to various challenges. The main challenges faced were the lack of consumer exposure and awareness of new technologies, issues of trust between the banks and the fintech firms, increased dependency of the banks on fintech, cultural changes due to the collaboration, and new risks arising due to the collaboration between the banks and fintech..

Razorpay’s Smart Solutions

To overcome the challenges, Razorpay came up with innovative solutions under different heads such as Banking, Risk and Fraud, and Accept Payments. The Banking solution had products such as ‘RazorpayX’, a business banking platform to assist companies to manage their finances. With the help of ‘RazorpayX’, companies were able to add funds to their current accounts and make payouts to vendors, customers, and partners using NEFT, UPI, RTGS, and IMPS. Another product was ‘Capital’, which helped companies to finance their business growth through working capital loans, cash advances, and instant settlements...

Razorpay’s Work–Flow Process

The online payment gateway model of Razorpay provided developers with an Application Programming Interface (API) platform to help them to customize their requirements on their websites and Android apps..

Customer Accolades

Most of the clients of Razorpay were satisfied with the solutions provided by its online payment gateway. With the banking related operations being taken care of by Razorpay, the companies were able to focus on their core business. Saurabh Agarwal, Chief Financial Officer at MedLife, a Razorpay customer, said, “Razorpay Route has been a great and simple solution to solve the manual process through its completely automated solutions. It helps Medlife to autoroute its daily fund collection to business units spread across different cities. This has helped in reduction of manual efforts and time savings in reconciliations. It now manages end-to-end payment flow and let Medlife focus on their core businesses.” ..

Road Ahead

Razorpay was poised to attain greater heights with the fresh funding and it expected to process US$ 25 billion in transactions by the end of 2020. The funding was to be utilized to expand its neo-banking product offerings into areas such as expense management, vendor payment, and tax management. Razorpay had one million merchants in 2019 and as of October 2020, this number had increased to five million..


Exhibit I: Razorpay’s Investors and the Funds Invested from 2015 to 2020

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