Bengaluru-headquartered fintech company, Razorpay, is investing heavily towards facilitating its next phase of growth in the booming Indian digital payments space.
On the same lines, the company has now launched a new corporate credit card for startups and SMEs, and activated digital payments for freelancers and homepreneurs, thereby promoting digital entrepreneurship in India. Besides the credit card launch, the company, on Friday, has also announced the acquisition of Opfin, a cloud-based payroll management solution provider.
According to Razorpay, the newly launched credit card will be supported by RBL as company’s banking partner. With this launch, Razorpay aims to solve challenges around access to credit, short term credit, reconciliation, expense filing and help businesses maintain healthy financials. Additionally, the card will allow businesses to enjoy a credit line ranging from INR 50K to 25 Lakhs with a no-cost interest for 50 days.
In India, SMEs contribute about 6.11% and 24.63% to the country’s GDP via manufacturing and service sectors respectively. With this credit card, Razorpay aims to mobilise credit for about 40% of businesses across India. Moreover, the company believes that the issuance of these credit cards by banks will have a wider acceptance in the country.
Razorpay Acquires Opfin
On the acquisition of Opfin, which automates the end-to-end payroll money flow for any business, Razorpay says that the time has come to improve the payroll and compliance process.
Razorpay believes that payroll is a fragmented market with no clear solution, however, with the acquisition, the company hopes to make this process a lot easier by leveraging robust technology and providing an enhanced experience. Further, the acquisition is expected to support the company’s AI-driven neo-banking platform, RazorpayX.
Anuj Jain, Founder of Opfin said that since Opfin is not just a payroll company, this acquisition will enable businesses to not only manage their entire payroll process and fund transfers but also manage the filing of taxes, compliances through a single platform, without hiring any external vendors
This is Razorpay’s second acquisition in the last six months, after Thirdwatch, an AI-driven company specialising in big data and machine learning for real-time fraud prevention.
In a press statement, the company said that these announcements were made at the second edition of FTX, Razorpay’s flagship fintech conference with over 1,000 attendees – including founders, CXOs and industry leaders.