RazorPay Unlisted Shares
About RazorPay
(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:
Funding Information
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.
Date: 13.11.2019
Company has grown by 500% in the last one year Reinforcing its commitment towards continuous investment in its strong workforce, converged payments solution company Razorpay is to implement its second ESOP buyback plan for its employees.
Sequoia India and Ribbit Capital, two of Razorpay’s key investors, will be the buyers at a premium. All existing and former employees who hold vested stocks will be eligible to sell up to 30 percent of their vested ESOP shares of the company.
Over 400 employees are eligible to participate. The aim is to motivate the Razorpay team to continue creating value, both for the company and employees.
Razorpay has grown by 500 per cent in the last year and has been witnessing a healthy growth rate of 35 per cent month-on-month. The company expects to grow five times in revenue by the end of the next fiscal year.
The company said, though ESOP buybacks have been part of the employee welfare schemes in larger organisations, the start-up industry, particularly in India, has only recently begun to see these developments, which point to the healthy growth of the start-up ecosystem.
Razorpay’s team raised their Series C funding in June this year. The ESOP buyback plan has been termed a reflection of the faith the company and its employees have instilled in each other.
Encouraging participation
Harshil Mathur, CEO and co-founder, Razorpay, said that the last four-and-a-half years were a fantastic journey. “The ESOP buyback model is a form of wealth creation for all employees. By encouraging all our former and existing team members to participate in this plan, it is our small gesture of giving back to the people who have trusted us.”
The company powers digital payments for over 6,00,000 businesses like IRCTC, Airtel, BookMyShow, Zomato, Swiggy, Yatra and Zerodha, and plans to increase this to one million by 2020.
Source: BusinessLine