Razorpay Now Allows Lending As It Expands Beyond Payments
Online payments gateway Razorpay now allows small businesses to borrow money from non-bank lenders using its platform.
“Payment acceptance is one part of the problem. What we want to do is digitise the merchant end-to-end, be it payments, loans and taxation,” Harshil Mathur, co-founder and chief executive officer of Razorpay, told BloombergQuint in an interview. “Everything should move digitally, only then will the merchant understand being digital.”
The Tiger Global-backed company attained an annual run rate of $30 million of loan disbursal during the pilot and expects it to touch $100 million by March. Razorpay tied up with Early Salary, Simpl, ZestMoney and ePayLater to help its customers get instant loans, Mathur said.
It’s also working on a platform called RazorpayX that will allow merchants to pay salaries and taxes and accept payments. “We will give enterprises real-time insights on cash flows, vendor payments, and more,” he said.
Razorpay, with about 1.7 lakh merchants, targets to double the number to about 3 lakh by the end of 2019.