Only a few months ago, we wrote of our evolution into India’s first Converged Payments solution. As acceptance of online payments in India was becoming a norm, we believed that our future lay in simplifying money flows from initiation, to disbursal and reconciliation.
Razorpay 2.0, we believe, will expand our reach into new markets and verticals, as we begin to enable the management of complex and business critical money flows.
Three months on – the response to our evolution has surpassed our own projections. Our new products have seen rapid adoption among existing and new customers. Razorpay continues to win awards and recognition from the industry and the media for its technology and its unique culture. And we have only strengthened our promise of simplified onboarding and integration with the best-in-class support.
We are all very proud to announce the closing of our Series B funding round of $20 million, led by Tiger Global and Y Combinator along with participation from Matrix Partners. We are also delighted that these marquee investors, who have participated in our last funding round, have reinstated their faith in us and our vision.
Y Combinator, who have been part of our growth since 2015, have led this round through their Y Combinator Continuity Fund.
In the past 1 year, Razorpay has clocked in a healthy growth rate of 40-50% month-on-month and we are on course to impacting lives of 500 million end consumers by 2020. We expect more than 10x growth in volume & revenue by the next fiscal year and our new products should contribute to at least 30% of our revenue.
The SaaS market in India is expected to grow to about $1 Bn in 2020. The impetus provided to sectors like FinTech, in particular, by demonetization, increased connectivity & financial literacy could propel this growth even further. And at Razorpay we want to be at the forefront of making a good SaaS product for India, in India.
Here is a quick update on Razorpay’s business to give you an idea of where this confidence stems from
We are seeing growth from conventionally cash-heavy industries
People associate digital payments with online commerce companies like Amazon, Ola and Hotstar. However, we are working with many businesses in more conventional industries like – logistics, travel, consumer electronics, financial services and education – who are looking to transform themselves with the utilization of fintech and accepting digital payments.
Our new products are helping businesses manage not just the acceptance of payments but the movement of money
Through, Razorpay Route we are helping several franchise businesses in education and retail manage the distribution of money across regional profit-centers. With Razorpay Subscriptions, we are helping large asset management companies automate monthly SIP payments from their customers. And our Smart Collect product is helping real estate leasing and rental companies manage and reconcile monthly rent payments with ease. All of these money flows existed before the existence of digital payments but are much easier to manage now with our technology.
We aren’t just building good products, we are building a great product company
In the past year, as our team has doubled, we have seen the impact of Razorpay’s unique culture of transparency and excellence, in differentiating our business. Our willingness to learn and ability to execute quickly has helped us overcome well entrenched competitors in some of India’s largest business sectors. Our focus on technology has led to innovation in our product stack and also enhanced our ability to cater to the technical buyer in prospective customers. We have also been able to attract talent from some of the best institutions and organizations in India and the world. And our team’s commitment to Razorpay and it’s customers has led to praise for our customer care and support.
From our founding in 2014, we have always believed in taking on big problems faced by businesses and empowering them to find solutions via technology. With our latest funding round we seek to expand our product stack further and deploy it in new markets. At the same time, we also want to pause and express our gratitude to our customers, partners, investors, well wishers and everyone else who’s made it possible for us to get this far.
Thank you! And there is more to come.