Payment gateway provider to enter Sri Lanka

Razorpay, a payment gateway solution provider focused on online merchants, plans to go international. It is looking to enter South East Asia and West Asia markets in 2018-19, Harshil Mathur, co-founder, has said.

“South East Asia and West Asia will be our next markets because the technology is scalable. Indonesia will be the first market we will look at. Sri Lanka and Middle East will be next,” Mathur told BusinessLine.

The fintech startup, which started its journey in mid-2014, is in talks with local and global (banking) players in these markets, Mathur said.

“Before we tap into these markets in 2018-19, we want to identify the partners,” he said.

Mathur made it clear that Razorpay was not shifting focus away from India, which, he said, will be a “key and primary market” for the company.

Thanks to demonetisation, the opportunities have gone up for Razorpay in the Indian market. “This year (2017-18), the focus will be on scaling up in India.

Lots of sectors have opened up due to demonetisation. Education, government and utility are our other focus areas where we will look to have deeper penetration,” Mathur added.

Mathur, an IIT Roorkee alumnus, said Razorpay aims to by this fiscal end double the number of online merchants using its payment gateway to 60,000 from 30,000 now. “We are purely merchant targeting. We don’t directly target the customers,” he said.

Till recently, Razorpay was helping merchants accept consumer payments. Now, this fintech has started focusing on B2B payments, which is a large but underserved market.As regards its ePOS, a mobile-app based point -of-sale (POS) targeted at offline payments, Mathur said that the number of downloads have touched 50,000 and the target is to take it to 1,50,000 by this fiscal end.

“We see more scope for ePOS and expanding it rapidly. We are adding support for Bharat QR. Merchants having this app can also accept payments through Bharat QR,” Mathur said.

Razorpay, which had raised Series A funding of $11.5 million, is not worried about funding for the next two years, according to Mathur.

“We expect to grow 10 fold in revenues and payment volumes this fiscal. Our immediate aim is to attain profitability so that we remain sustainable. We are hopeful of break even in two years. In the last one year, we have seen 20-fold growth in payment volumes and revenues. Last three months, there has been a 30 percent growth month-over-month,” he said.