B2B payments startup Razorpay announced the launch of Razorpay Capital, a lending marketplace offering both short-term working capital loans and long-term business loans.
Integrated with the company’s existing dashboard, Razorpay Capital also provides quick settlements and collateral-free loans to its customers.
“We always thought we can make lending a lot easier than what it is today. We are now launching a full-fledged lending marketplace offering SME loans from a daily basis to monthly,” Harshil Mathur, co-founder and CEO of Razorpay told Inc42.
Razorpay launched the beta version of Razorpay Capital a few months ago, and the marketplace now has an annual loan disbursal rate of $30 million, with a goal of reaching $100 million by March 2019. The platform offers loans varying from $7,058 (INR 5 Lakhs) to $141,000 (INR 1 Cr).
Based on Razorpay’s Alternative Credit Decisioning System, short-term working capital loans are offered to companies looking for additional operational working capital, and business lending is for high-growth firms that want to invest in new projects and expand their offerings.
Mathur explained that the marketplace aims to provide hassle-free, pre-approved business loans from Razorpay’s NBFC and banking partners without collateral. The Alternative Credit Decisioning System utilizes transaction records to come up with a credit score for each applicant, which NBFCs and banking partners then use to offer pre-approved loans. While smaller loans are approved online, Mathur added that larger amounts ($70,000 or more), would also need offline verifications.
In addition to its new lending marketplace, the company announced the launch of RazorpayX, which is designed to simplify, accelerate, and automate SME banking operations.
Launched in 2015, Razorpay was cofounded by Shashank Kumar and Harshil Mathur and incubated at the Y Combinator accelerator. Some of its early investors include Matrix Partners; Y Combinator; Ram Shriram (an early investor in Google); Jeff Huber, senior vice president at GoogleX; and Justin Kan, a partner at Y Combinator.