Bengaluru-based payments solution company Razorpay is realigning its business and existing resources to support new sectors of growth which have come up during the Covid-19 related lockdown. The company, which had seen a negative dip of 30% in its overall transactions during the period, has seen demand coming back in sectors such as grocery and ecommerce to pre-Covid levels.
“Travel and hospitality as well as lending sectors are still recovering from the lockdown. However, we expect lending to recover over the next six months,” said Harshil Mathur, CEO and co-founder of Razorpay.
Razorpay which launched its own lending marketplace, Razorpay Capital has admittedly seen a slowdown during the time though Mathur believes that there will be more takers for data backed platforms now more than ever, when NBFCs are back to writing cheques.
The Tiger Global Management backed company, which primarily works with online businesses, is now seeing increased demand from offline retailers for touch-free digital transactions, as well as an uptick in online payments in new sectors such as gaming, wealth management and education technology companies.
“We re-launched our e-POS machine which allows merchants to accept payments on the phone as most of them do not want to handle currency. We are re-aligning our resources in these new areas where demand is coming from,” said Mathur.
Founded in 2014 by Mathur and Shashank Kumar, the company had also forayed into neobanking last year, as part of its expanded product suite Razorpay X which includes its lending marketplace business.
“With most of the banking moving online, neobank can guarantee a better digital experience,” Mathur told TechCircle.
He added that the company is well-capitalised for now, having raised $75 million from Sequoia and Ribbit Capital in June 2019. The company had also acquired cloud-based payroll management solution, Opfin in November 2019 as part of its push into neobanking.