RazorPay Unlisted Shares
(i) Razorpay is the only payment solution in India that allows businesses to accept, process and disburse payments with its product suite. It gives you access to all payment modes including credit card, debit card, net banking, UPI and popular wallets including JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money and PayZapp.
(ii) Founded by IIT Roorkee alumni in 2013, Razorpay aims to revolutionize online payments by providing clean, developer-friendly APIs and hassle-free integration. They offer a fast, affordable and secure way for merchants, schools, e-commerce, and other companies to accept payments online.
(iii) Its current client base is IRCTC, Airtel, Book My Show, Swiggy, Zomato, Yatra and Zerodha.
What is the Payment Gateway?
It is a tunnel that connects your bank account to the online shopping website. A Payment Gateway is a software that authorizes you to conduct an online transaction through different payment modes like net banking, credit card, debit card, UPI or the many online wallets that are available these days. Payment gateway takes care of all the security aspects of your card details.
When you buy something on Amazon, the payment gateway helps in transferring money from your bank account to the Amazon account.
In short, Payment gateway is the life-line of online shopping.
Video to understand how Payment Gateway works:
2015:[ Seed Funding ]
It has raised a total of $11.6 Mn from two funding rounds in 2015 having MasterCard, Tiger Global, Matrix Partners and the founders of InMobi, Snapdeal, Freecharge, as investors.
2016: [ Series A Funding ]
It had raised $11.5 million in a Series-A round from the existing investors such as Tiger Global and Y Combinator, and 33 angel investors.
2018: [ Series B Funding ]
It has raised $20 million in a round led by existing investors Tiger Global and Y Combinator, along with participation from Matrix Partners.
2019: [ Series C Funding ]
It has raised $75 million in a round led by Ribbit Capital and Sequoia Capital. The round also saw the participation of existing investors Tiger Global and Y Combinator, along with participation from Matrix Partners.
How does Razor Pay earn money?
It charges 0.25 to 0.5 percent fees on every transaction made through their gateway. They also charge flat Rs.50 on big-ticket size transactions. So we can conclude that the growth of the e-commerce platform is directly proportional to Razor pay’s revenue.
The company also has a lending arm, Razorpay Capital. Razorpay Capital offers both short-term working capital loans as well as long-term business loans.
As per management, they are expecting nonpayment gateway businesses to contribute an estimated 40% to its overall revenue over the next two years.