The pandemic was a challenging time not only for individuals but also for businesses. As more and more companies went digital and started collecting digital payments through different modes, it imposed challenges in receiving payments due to online fraud. Razorpay, the fintech company in India, recognised that several small and medium-sized businesses were encountering similar complications and streamlined the online payment process. With its robust business model, and digital payment services, the company also performed well in the unlisted share market. If you plan to earn high ROI in the long term, investing in Razorpay unlisted shares might be an ideal option.
Let’s now learn how Razorpay has revolutionised SMEs online payments process and streamlined everything for businesses and customers.
Razorpay: The Best Payment Gateway In India
Established in 2014 by Shashank Kumar and Harshil Mathur in Bengaluru, Razorpay is a full-stack financial service provider helping Indian businesses with technology solutions to address the payment and banking journey. As Razorpay offers companies an array of payment resolutions, it empowers them to acknowledge payment from their patrons through credit/debit cards, UPI, mobile wallets, etc. The company endeavours to streamline the payment process for businesses of any type by offering different kinds of payment solutions.
A pool of India’s most prominent brands, like Swiggy, Zomato, and CRED, rely on Razorpay to cater to their payment processing needs. Razorpay aims to help companies regulate cash flow, accept online payments and amplify their business operations.
Empowering SMEs With Digital Payments
With its efficient products, the company is bettering the online payment systems for startups and SMEs to make the digital payment process seamless. The company’s cutting-edge approach to payments has contributed to its growth and success as various businesses across India and other countries utilise Razorpay. In September 2017, Razorpay launched four more products – Smart Collect, Route, Invoices, and Subscriptions, allowing companies to manage multiple aspects of money involvement like collection, reconciliation and disbursal.
At the same time, the company announced that it planned to enter the SME lending space with its subsidiary venture called Razorpay Capital. It is a lending platform designed to support small and medium-sized enterprises with instant and easy access to lenders. They aim to solve liquidity and cash flow challenges that SMEs usually face. This cutting-edge and revolutionary strategy towards payment processing earned the company the “Best Payment Gateway” award at the 2020 Indian Retail and eRetail Awards. With such tremendous work and achievement, the company emerged as a preeminent payment gateway in India, simplifying the online payment process of SMEs.
Business Model
As a leading Fintech company, Razorpay generates revenue via its transaction-based model. Basically, the company charges a small fee for each transaction made through its payment gateways, such as net banking, UPI, debit/credit cards, and mobile wallets. This business model has helped the company become India’s fastest-growing payment gateway provider, having a user base of five million merchants.
Apart from payment gateway services, the company has also ventured into the financial services segment. The company offers vendor financing services and working capital loans to its merchant partners. These services have now become popular among SMEs that are struggling to secure funding from traditional lenders. Since its inception, the company has proficiently managed more than $40 billion in transactions. According to the Razorpay team, the Indian Fintech market will touch Rs. 6.2 lakh crore by 2025. It also said that the pandemic has accelerated the company’s digital payment segment.
Revenue And Growth
Since its inception, this Bangalore-based company, Razorpay, has witnessed remarkable growth. The company offers payment services to more than 5 million businesses, including Ola, Zomato, Facebook, etc. The company’s valuation surged to $7.5 billion, making it India’s most valued privately-held fintech company. Razorpay operated around $50 billion in payments in 2021 and recorded a 3x surge in transaction volume. The company also offers services to more than 34 Indian unicorns, including Flipkart, Dream 11, BharatPe, BYJU’s, and OYO Rooms, to name a few.
In addition, the company recorded a standalone net profit of Rs 7.3 crore in FY22 from Rs 6.1 crore in the previous fiscal year, as per the company’s filing with the Ministry Of Corporate Affairs. The company also recorded an operational revenue of Rs 1,481 crore compared to the last fiscal year, which was Rs 841 crore. It is clearly visible that the company has been performing well financially since it came into operations offering investors an opportunity to earn ROI by investing in Razorpay unlisted shares.
If you want to diversify your investment portfolio, Razorpay’s unlisted shares is a golden investment opportunity for you. Investing with the best online brokerage platform like Stockify will make your investment experience hassle-free and streamlined. Connect with the experts at Stockify to start trading!
