With 1.3 Bn population, few markets are just unstoppable in India. Digital payments and lending are two of them. As, both the digital payments market and digital lending are set to hit $1 Tn each, in the next five years, many companies including Flipkart and Paytm have been planning to foray into India's digital lending market.\r\n\r\nRazorpay, a prominent B2B payments startup is next to explore the digital lending space. The payments startup has now officially launched Razorpay Capital, a lending marketplace offering quick settlements and collateral-free loans. Integrated with the company\u2019s existing dashboard, Razorpay Capital offers both short-term working capital loans as well as long-term business loans.\r\n\r\nThe company has also launched RazorpayX, which claims to simplify, accelerate, and automate small and medium enterprise's (SME) banking operations such as accepting payments, managing cash flows, reconciling transactions and enabling flexible payouts.\r\n\r\nSpeaking to Inc42, Harshil Mathur, cofounder and CEO of Razorpay said, \u201cWe always thought we can make lending a lot easier than what it is today. \u00a0We are now launching a full-fledged lending marketplace offering SME loans from a daily basis to monthly.\u201d\r\n\r\nThree months back, Razorpay had launched the beta version of Razorpay capital. The marketplace currently has an annual loan disbursal rate of $30 Mn and aims to attain $100 Mn loan disbursal rate by March 2019.\r\n\r\nFounded in 2013 by IIT Roorkee alumni Shashank Kumar and Harshil Mathur, Razorpay claims to be India\u2019s first converged payment solution.\r\n\r\n\r\nRazorpay Capital: What It offers\r\nRazorpay has partnered with a number of Non Banking Financial Companies (NBFC), bringing their solutions onto the Razorpay Capital. The platform would offer a loan of ticket size varying from $7,058 (INR 5 Lakhs) to $141K (INR 1 Cr).\r\n\r\nBased on Razorpay\u2019s own Alternative Credit Decisioning System, the lending marketplace offers early settlements \u2014 short-term working capital loans \u2014 that can be availed automatically or on-demand by merchants and business loans that are long-term loans for growing businesses.\r\n\r\nWhile the business lending aims to cater to high-growth companies looking to invest in new growth projects and expansion, early settlements is for companies looking to fuel their operational working capital.\r\n\r\nMathur said that the marketplace aims to provide hassle-free, pre-approved business loans from Razorpay\u2019s NBFC and banking partners without any collateral. The credit limits are defined based on SME\u2019s unique Razorpay credit score.\r\n\r\nLike Experian and CIBIL scores, the Razorpay\u2019s Alternative Credit Decisioning System uses transaction records to assign a unique credit score to each applicant. Based on that, the NBFCs and banking partners provide pre-approved loans.\r\n\r\nOn how automated these loans are, Mathur says that depends on the size of the loan. If it\u2019s a small\u00a0amount, it's fully online. However, for big amounts such as $70K (INR 50 Lakhs) or more, there would be some offline verifications as well.\r\n\r\nSome of the existing lending\u00a0marketplaces are Finzy, Faircent, i2iFunding and i-Lend.\r\nRazorpayX: Managing Finance\r\nRazorpayX is an AI-enabled solution offers end-to-end operations for single or multiple accounts across various banks, managing their cash flow by aggregating these accounts.\r\n\r\nShashank Kumar, cofounder Razorpay told Inc42, \u201cWith RazorpayX, one can create and manage multiple payouts and disbursals via various methods such as bank transfers UPI, cards, wallets and more with complete control over the routing logic.\u201d\r\n\r\nLike many other personalised fintech startups such as Mintzip,\u00a0 RazorpayX further provides insights and recommendations based on income, expenses, accounting, taxation and payments reports that are all made available on the dashboard.\r\n\r\nBesides the company has also launched\u00a0Razorpay Flash Checkout, adding new features such as of pay later and flashing OTP in the same screen, to its existing payment gateway and The X Club, a startup community.\u00a0The X Club aims to support startups in their entrepreneurial journey and makes it less stressful and more successful.\r\nRazorpay's Growth Story\r\nLast year, the company had rebranded its solutions under Razorpay 2.0. Stepping up from a being a simply payments gateway to offering a suite of B2B payments solutions, the payments startup had then introduced Razorpay Route, Razorpay Smart Collect, Razorpay Subscriptions and Invoices, all aiming to facilitate automated digital transactions to its clients.\r\n\r\nAfter demonetisation was announced on November 8, 2016, Razorpay, in September 2017, had claimed to have grown 10x during the period. While demonetisation bubble is settled now, Mathur said, \u201cIn 2018 too, we have managed to grow 6X in terms of payments transaction volume.\u201d\r\n\r\nHe added, "In the last one year, we have made a smooth transformation from being a single product company to multi-product company.\u00a0 This includes subscription plans for recurring payments, generating virtual accounts on demand, custom payment pages, and more,\u201d added Mathur.\r\n\r\nRazorpay currently caters to 170K SMEs on its platform and aims to increase this to 300K by 2019.\r\n\r\nMarking policy developments, Mathur averred that for the last couple of years, what we have seen is that there has been an increased attention and focus on payments in terms of policies and investments. For instance RBI\u2019s decision to appoint an ombudsman. This gives a lot more trust back to the system.\r\n\r\nRazorpay was part of the 2018 edition of the most coveted list of India's most innovative startups \u2014 42Next by Inc42.