A new startup called RazorPay – part of the current Y Combinator class – is hoping to ride the trend of India’s e-commerce opportunity, by giving more startups and larger tech companies in the country the ability to easily integrate payments into their services.
Using RazorPay’s API, a company can add payments with a few lines of code, and consumers can then pay using a credit card, a debit card or net-banking (online bank transfers, which are a popular payment method in India).
The difficulty of adding a payment layer to a service online got felt first-hand by company cofounders Shashank Kumar and Harshil Mathur.
“We thought, we can do something about this, not just for ourselves but for others.”
RazorPay has competition in the form of companies like CCAvenue, BillDesk and PayU, but the wider market is still relatively immature.
“Really, the payments ecosystem in India is still in the pre-PayPal space. What we are doing is more like jumpstarting rather than disrupting.”
Early customers include truck delivery service Shifter, nanotechnology marketplace NanoWE, and travel and hospitality startup Zostel. The company’s merchants have grown 100% weekly, according to Mathur, and transaction volume has grown at 300% weekly.
RazorPay’s main product got built by the pair in India, then streamlined and taken live in California.
“We plan to go back to India after the [YC] program ends and set up in Bangalore.”