Financial payments provider, Razorpay is continuing to bet on new software-as-a-service (SaaS) products for its next wave of growth as the company continues to launch new products for merchants and small businesses in the space.
On Thursday, Razorpay announced the launch of three new solutions for startups and small businesses including the launch of Razorpay Magic, which allows shoppers to prefill their information including address and preferred payment options on a merchant’s checkout page. The product is in line to help online merchants increase conversions at checkout pages.
The company also launched ‘RazorpayX Tax Payment Suite’, which allows businesses to automate tax payments by helping them compute and pay tax deducted at source (TDS), goods and services tax (GST), and advance tax, on a single platform. The company has also piloted its ‘Magic checkout’ and tax payment solution across 100 and 50 small businesses respectively.
The fintech unicorn, which tripled its valuation to $3 billion in 2021, also announced the launch of ‘Razorpay Rize’, a launchpad to help young startups receive mentorship and connect with other founders and mentors, in a bid to accelerate their growth.
Rize has partnered with over 50 product companies including Amazon Web Services, Freshworks, WeWork, Zoho, Shiprocket, WebEngage and others to create the comprehensive toolkit for small startups.
According to co-founder and chief executive officer, Harshil Mathur, Razorpay looks to have 1 lakh startups on the ‘Rize’ network, in the next two years. “Every business today is solving the same problems of payroll, etc., themselves. So why doesn’t a company build a SaaS suite and offer it to all businesses? B2B (business-to-business) SaaS hence is one space we will keep investing in more and more,” said Mathur in an interaction.
Mathur added that the company has already invested in B2B logistics provider, Shiprocket and small business advisory platform MSMEx, till date. The company now plans to make more investments in companies building solutions for small businesses and will make further acquisitions in the space to bolster its own product suite.
The launch of new products from Razorpay comes just two years after the company diversified into value added services for small businesses through the launch of its neo-banking and lending platform RazorpayX and Razorpay Capital, respectively.
Currently, almost 25,000 businesses have subscribed to the RazorpayX offering, with the lending platform enabling Rs 600 crore - Rs 800 crore worth of loans every month. It plans to foray into larger ticket size loans and launch credit-line for small businesses, next year.
For seven-year-old Razorpay, its core offering continues to be payments and financial infrastructure, to help businesses manage money flow. However, within two years of launch its newer lines of business including neo-banking and lending operations already contribute 30% to the firm’s overall revenues.
The company also claims it is currently processing total payment value worth $60 billion on an annualised basis through its platform. The company expects this number to touch $90 billion by the end of 2022.
Razorpay is also looking to foray into the Southeast Asian market with the launch of its payment solutions in 2022.
The company is also keen to power crypto-payments in the country, and is closely watching the parliament discussion on the matter, Mathur said.
“Definitely, we are waiting for how the crypto bill comes out and if there are different rules under which the regulators allow it, we would love to support it. The only reason why we have stayed away from it is because there is a ‘grey’ zone and we do not know what is legal and what is not,” added Mathur.
Last month, VCCircle reported that Razorpay is in advanced talks with large global funds to raise $270 million (Rs 2,008 crore) in its Series F round of funding, that is likely to more than double the valuation at $6.5 billion. It had last raised Series E funding of $160 million in April 2021 when it was valued at $3 billion.