Bengaluru-based Razorpay, the neo-banking platform, has introduced a new kind of Corporate Credit Card for startups and SMEs, and has activated digital payments for freelancers and home-preneurs, with an aim to promote digital entrepreneurship in India.
Built on convenience and privacy, this card will allow businesses a no-cost interest for 50 days with a credit line ranging between 50,000 to 25,00,000. While SMEs contribute about 6.11% and 24.63% to the country's GDP via manufacturing and service sectors, respectively, through this launch, the company aims to mobilise credit for about 40% of businesses across the country.
As these credit cards will be issued by banks, they will have wide acceptance clubbed with powerful features.
Razorpay also announced its second acquisition, Opfin, a cloud based payroll management solution, which automates the entire payroll money flow for any business, end-to-end.
Razorpay's acquisition of Opfin will compliment RazorpayX's business banking strategy. RazorpayX is an AI driven neo-banking platform, where businesses can do everything and more with Razorpay that they were currently doing with banks.
Talking about the acquisition, Anuj Jain, founder, Opfin said, "I strongly believe that coming together with Razorpay will accelerate the growth story of payroll management at an industry level. Given Razorpay's strength in technology and reach across verticals, and Opfin's software capabilities, I am certain that we will create a dent to make the entire payroll process simple, easy and quick for businesses."
Since Opfin is not just a payroll company, this acquisition will enable businesses to also manage filing of taxes, compliances through a single platform, without hiring any external vendors. This is Razorpay's second acquisition in the last six months, after Thirdwatch, an Artificial Intelligence driven company specialising in big data and machine learning for real-time fraud prevention.
These announcements were made at the second edition of FTX, Razorpay's flagship fintech conference. According to Razorpay, digital payment volumes in India are set to grow at over 20% by 2023, faster than China. The company aims to take advantage of this growing market in the coming days with new offerings for the Indian digital ecosystem.
Commenting on the new offerings, Harshil Mathur, CEO and co-founder of Razorpay, said, "It's important to think about financial inclusion not just in terms of consumers but also in terms of businesses. Today, many of the existing solutions businesses use to manage their finances aren't well-suited for modern internet companies. The move we have made today, helps us expand our horizon in payments and banking and solve new challenges for ambitious businesses who are wanting to disrupt the Indian economy."
Razorpay also announced the launch of Current Accounts as part of the RazorpayX platform. According to Razorpay, there is an increasing market demand for a platform that supports a large number of transactions, provide superior customer experience, and one that lets a business define its own processes. Along with the existing features of RazorpayX, the company will now support standard banking features like debit cards, cash transfers, along with FD, RD and other treasury offerings.
Razorpay has been charting an exponential growth since its inception. Currently, the payments business forms 70% of Razorpay's revenue and the neo-banking platform. Razorpay X, along with Razorpay Capital, forms the rest 30%. With a 500% growth in the last one year, the company has been witnessing a growth rate of 35% month-on-month.
Currently, powering payments for over 800,000 businesses, including the likes of Indigo, BSE, Thomas Cook, Reliance, SpiceJet, Aditya Birla, Sony and Oyo, the team plans to increase this to 14,00,000 by 2020. This neo-banking platform expects a 4x growth in its volumes by the end of the next fiscal year.
Talking about the recent innovations, Shashank Kumar, CTO and co-founder said, "Our announcements from today - the launch of Corporate Credit Cards, Current Accounts and the acquisition of Opfin, features RazorpayX as the hub for incredibly powerful applications built to cover everything a business needs to bank on."