BENGALURU: Payments startup Razorpay has acquired payroll and HR management software firm
Opfin
as it widens the bouquet of services for its merchant partners. Razorpay, which has been expanding beyond the payments gateway business, will now enable freelancers or micro-entrepreneurs to accept funds online through a link. This is also aimed at women entrepreneurs, standalone businesses in tier-2 and -3 markets.
With Opfin, the firm’s merchants can use it for their payroll process, fund transfers, manage filing of taxes, and compliance through a single platform. The Bengaluru-based startup last raised $75 million (Rs 538 crore) from
Sequoia
and Ribbit Capital in June.
It announced a slew of other new products, like current account and credit card, for startups and small enterprises to enhance their access to credit, manage expense filing, etc. This adds to the existing offerings of RazorpayX, the neo-bank platform of the company.
Razorpay competes with the likes of
PayU
and
BillDesk
in the payments gateway business, which contributes about 70% of the revenue for the firm. The company’s lending business —
Razorpay Capital
— is scaling up steadily as the company is lending about $200 million a month through its financial service partners.
“We have seen there is a lot of demand for credit in the market. With our data (merchants using Razorpay), it helps to disburse the capital to the right merchants. The corporate credit card will also solve the problem for many small firms who can’t get immediate access to such credit facility,” said Razorpay co-founder and CEO
Harshil Mathur
. The company made the new announcements during its annual summit
FTX
.
Razorpay had tied up with RBL Bank to offer credit cards. In its payments gateway business, it has about 8 lakh merchants with an annualised transaction volume of $10 billion. Mathur said he is expecting non-payments businesses to contribute 40-45% of its turnover in the next two years.
Ready to Master Stock Valuation? ET’s Workshop is just around the corner!
Start a Conversation
Post comment