Razorpay Acquires Payroll Management company Opfin
Delivering innovation that empowers businesses, Razorpay, the neo-banking platform, today introduced a new kind of Corporate Credit Card for Startups and SMEs, and activated digital payments for freelancers and home-preneurs, thereby promoting digital entrepreneurship in India. Razorpay, also announced its second acquisition, Opfin, a cloud based payroll management solution, which automates the entire payroll money flow for any business, end-to-end.
These announcements were made at the second edition of FTX, Razorpay’s flagship fintech conference with over 1,000 attendees – including founders, CXOs and industry leaders who were there to experience FinTech at its next level, exchange views on industry challenges and share what’s new at Razorpay.
Reports suggest that Digital payment volumes in India are set to grow at over 20 percent by 2023, faster than China. Razorpay believes that it is not a far dream to achieve this if the entire ecosystem is determined to build new and intelligent technologies to improve the Indian financial infrastructure.
Opening a new world of opportunities, Razorpay has been actively involved in recognising and solving for new age banking problems, ahead of time. The company hopes that the new offerings announced today will address complexities in payments and banking and ease businesses of their worry around money management.
Delighted about the success of the company thus far, Harshil Mathur, CEO and Co-founder of Razorpay, said, “It’s important to think about financial inclusion not just in terms of consumers but also in terms of businesses. Today, many of the existing solutions businesses use to manage their finances aren’t well-suited for modern internet companies. The move we have made today, helps us expand our horizon in payments and banking and solve new challenges for ambitious businesses who are wanting to disrupt the Indian economy. We want to make banking trivially simple and accessible for our partner businesses so that while they focus on building new ideas, products and experiences, we take care of their concerns around financial processes.”
He added, “Starting today, businesses will enjoy the convenience of smart financing – the new additions to the product suite will make it easy for new age companies to manage finance whenever they need it, however they need it, at the click of a button. With solutions like these, our desire is to take FinTech to it’s next level for all our partner businesses and their consumers.”
- Razorpay Acquires Opfin: It’s time to Up the Payroll and Compliance Process
Razorpay announced its acquisition of a Payroll and HR Management Software company, Opfin, to solve for seamless automation of a business’s entire payroll process. Payroll is a fragmented market with no clear solution. With Opfin, Razorpay hopes to make this effort a lot easier with robust technology and an enhanced experience.
This acquisition is a significant part of RazorpayX’s business banking strategy. RazorpayX is an AI driven neo-banking platform, where businesses can do everything and more with Razorpay that they were currently doing with banks.
Anuj Jain, Founder, Opfin said, “I strongly believe that coming together with Razorpay will accelerate the growth story of payroll management at an industry level. Given Razorpay’s strength in technology and reach across verticals, and Opfin’s software capabilities, I am certain that we will create a dent to make the entire payroll process simple, easy and quick for businesses. ”
Since Opfin is not just a payroll company, this acquisition will enable businesses to not only manage their entire payroll process and fund transfers but also manage filing of taxes, compliances through a single platform, without hiring any external vendors. The acquisition will also Fastrack a few years in how the payroll industry has functioned and ensure that businesses follow all compliances.
This is Razorpay’s second acquisition in the last six months, after Third watch, an Artificial Intelligence-driven company specialising in big data and machine learning for real-time fraud prevention.
- Razorpay launches Corporate Credit Cards: Helps manage Expenses and Vendor payments
One of the biggest announcements at the forum was the launch of Corporate Credit Cards for SMEs and Startups, with RBL as the company’s banking partner. With this launch, Razorpay aims to solve challenges around access to credit, short term credit, reconciliation, expense filing and help businesses lead a healthy financial life.
Built on convenience and privacy, this first of its kind card will allow businesses a no-cost interest for 50 days with a creditline ranging between 50,000 to 25,00,000. While SMEs contribute about 6.11% and 24.63% to the country’s GDP via manufacturing and service sectors respectively, through this launch, the company aims to mobilise credit for about 40% of businesses across India. As these credit cards will be issued by banks, they will have wide acceptance clubbed with powerful features.
- Razorpay launches Current Accounts: The New age banking platform
One more significant announcement was the launch of Current Accounts as part of the RazorpayX platform. There is an increasing market demand for a platform that supports a large number of transactions, provide superior customer experience, and one that lets a business define its own processes – traditional Current Accounts are not there yet. Along with features that RazorpayX already provides, the company will now support standard banking features like Debit Cards, Cash transfers, along with FD, RD and other treasury offerings.
- Razorpay now supports Freelancers and Home-preneurs
Having served businesses thus far, Razorpay now launches payment support for freelancers, consultants and other unregistered business like tutors, gym instructors and others selling online via Instagram, Facebook and other platforms. According to reports, India is the largest freelancer market in the world where one in every 4 freelancers in the world is an Indian.
Typically, freelancers, especially in Tier 2 and 3 cities, face troubles with selling products without a website, collecting advance payments, creating GST compliant invoices, lack of enterprise grade tools to manage their bills and finances and needing constant payment follow-ups. With features like payment support for over 100 currencies, freelancers and individual businesses can access a larger pool of consumers across the world.
Concluding the second edition of FTX, Shashank Kumar, CTO and Co-founder said, “Today, payments and banking aren’t transactional anymore; they are transformative and impactful, and the only way to stay relevant and impactful is by creating value for businesses in an ever-evolving environment. The success of RazorpayX and Capital is a testimony and an opportunity to continue developing new products that manage the who, what, when and where of any transaction, from acceptance to disbursement and settlements to real-time insights, and more. Our announcements from today – the launch of Corporate Credit Cards, Current Accounts and the acquisition of Opfin, features RazorpayX as the hub for incredibly powerful applications built to cover everything a business needs to bank on.”
Razorpay has been charting an exponential growth since its inception. Currently the payments business forms 70% of Razorpay’s revenue and the neo-banking platform, Razorpay X along with Razorpay Capital forms the rest 30%. With a 500% growth in the last one year, the company has been witnessing a healthy growth rate of 35% month-on-month. Currently powering payments for over 800,000 businesses including the likes of Indigo, BSE, Thomas Cook, Reliance, SpiceJet, Aditya Birla, Sony and Oyo, the team plans to increase this to 1,400,000 by 2020. This neo-banking platform expects a 4x growth in its volumes by the end of the next fiscal year.