Mathur wants to create new products that will change the lives of millions of businesses and consumers
Bengaluru’s Razorpay, with US$741.5 million funding backed by investors, said one of the first full-stack financial solutions companies has received an in-principle approval from Reserve Bank of India (̉RBI) for a Payment Aggregator (PA) License.
This reiterates the trust placed by over 8 million businesses in Razorpay to boost and support their business growth, said the Fintech company in a release on 11 July 2022.
In order to ensure safety of merchants and consumers, the RBI issued a payment aggregator framework in March 2020, stating that payment gateways will be mandated to have a license in order to acquire merchants and provide them with digital payments acceptance solutions.
Under RBI’s strict evaluation process, more than 185 fintech enterprises and startups submitted their proposals for a payment aggregator license. The few firms authorized to operate as payment aggregators in India will come under the direct purview of the RBI.
As a company that has always adhered to regulatory governance while innovating toward building the financial backbone for Indian businesses, Razorpay was a leading contender for a payment aggregator license.
“We want to create new products and build experiences that will change the lives of millions of businesses and consumers,” said CEO & Co-founder of Razorpay Harshil Mathur while commenting on receiving the payment aggregator license.
“We at Razorpay, recognize that we have a responsibility to innovate by not just looking at the future but taking analogies from the past, and strengthening the financial ecosystem of tomorrow, so that millions of businesses, small and big can flourish.
“This event only further strengthens our commitment to never stop reinventing,” he said.
He elaborated, “With the digital payments space coming under direct RBI regulation, we can expect to not only see an immense upsurge in online payment adoption and trust but also witness a magnified surge in digital payment innovations in the coming years.
“With this trust placed in us, we will continue building the financial backbone for businesses in India, one that is more cashless, more frictionless, more secure, and more connected.”
With a sharp focus on product innovation that is designed to empower and enable uncontrolled growth for small businesses, Razorpay has become one of the fastest-growing Fintechs in India.
The payment aggregator license will now help Razorpay further its vision of making digital payments easily accessible for all Indian businesses.
Established in 2014, the company provides technology payment solutions to over 8 million businesses.
Founded by alumni of IIT Roorkee, Shashank Kumar and Harshil Mathur, Razorpay is the second Indian company to be a part of Silicon Valley’s largest tech accelerator, Y Combinator.
Marquee investors such as Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Sequoia Capital India, Ribbit Capital, Matrix Partners, Salesforce Ventures, Y Combinator and MasterCard have invested a total of US$741.5 million through Series A, B, C, D, E & F funding.
A few angel investors have also invested in Razorpay’s mission to simplify payments and banking and redefine how finance works in India. fiinews.com
