Razorpay, a large payments processing outfit in India, has introduced an array of new services to provide startups, businesses and gig workers in the country with credit and banking services, according to a report.
The Bangalore-based startup, which raised about $75 million in funding from Ribbit Capital and others earlier this year, aims to continue its expansion and to offer services for businesses that are not served by traditional banks. Razorpay launched a corporate credit card along with banking services and a new payment option to allow businesses to quickly receive money from clients.
In India, many startups struggle to get financial services and bank loans, and many cannot get a corporate credit card.
Razorpay has developed a system to identify eligible donors, according to Founders Harshil Mathur and Shashank Kumar. The cards, which are issued by RBL Bank, offer credit lines between $700 and $34,800. Companies can avoid interest fees if the loan is paid back within 50 days.
The company is also introducing a current accounts initiative.
“While [the] personal banking ecosystem in India has scaled tremendously in recent years, business banking is still old-school,” Mathur said. “Most processes are still manual, and there is no communication among your invoice, payroll [and] booking systems. People have to deal with spreadsheet files.”
To alleviate this issue, the company has introduced a neobanking platform.
“As a business, if you want to create a current account with a bank, we take care of it. Everything – your transactions and payables – happens on Razorpay’s platform, and you can manage them through a single dashboard,” Mathur said.
Razorpay also offers a payroll management service.
“One of the most common challenges in a business is how they handle payrolls. Most of these payrolls work with different systems, such as HR and accounting. Again, you have to create spreadsheet files and provide [them] to the bank, which does the processing. [Our] goal is that we will provide one single platform to manage payments better,” Mathur said.
Finally, the company has introduced a payment option for unregistered businesses in the country. Companies can send a link that can be accessed through text or email to get a payment in real time.
“We support 100 currencies, so a person can have their money delivered from any country,” Mathur noted.