How Two IIT Grads Built a $7.5 Billion Startup That Powers Digital India
In 2013, two IIT Roorkee graduates—Harshil Mathur and Shashank Kumar—were frustrated by one seemingly simple problem: why was accepting online payments in India so difficult for startups? They experienced this pain firsthand while working on a crowdfunding project. To get a payment gateway, they had to fill mountains of paperwork, endure weeks of waiting, and still face rejections from banks. That inefficiency sparked the idea that became Razorpay.
What started as a problem statement soon became India’s most iconic B2B fintech startup.
The Humble Beginning: Razorpay 1.0
In 2014, the duo applied to Y Combinator, the legendary U.S. startup accelerator, with a bold pitch: to make online payments seamless for Indian businesses. Razorpay became only the second Indian startup ever to get into Y Combinator. They received initial funding of $120,000 and got to work building what they envisioned as a modern, developer-friendly payments gateway for India.
Their first few clients were other startups and early-stage businesses—people who deeply resonated with the pain point Razorpay was solving.
“Our early growth came from word-of-mouth and developer love. We focused on making Razorpay ridiculously easy to integrate,” said Harshil.
By 2016, Razorpay had launched its first full version and was handling payments for thousands of Indian businesses.
The Evolution: Beyond Just Payments
What started as a payment gateway soon evolved into a full-stack fintech platform. Razorpay built an entire ecosystem for business finance.
- RazorpayX: A neo-banking platform offering current accounts, automated payroll, and vendor payouts.
- Razorpay Capital: Offering working capital loans and credit lines to SMEs.
- Razorpay POS, Subscriptions, Invoices: Tools for modern business workflows.
They also made strategic acquisitions to expand their reach—Ezetap (point-of-sale), Curlec (Malaysia-based recurring payments firm), and BillMe (invoice management).
By 2021, Razorpay had officially become a unicorn, and by 2022, its valuation had surged to over $7.5 billion.
Product-Led Growth & Razor Sharp Focus
What sets Razorpay apart is its developer-first DNA. The company built tools that were plug-and-play for startups but robust enough for enterprise clients. They introduced instant onboarding, beautiful dashboards, and deep analytics—features rare in traditional Indian financial services.
Their API-first model won the hearts of engineering teams across the country. From small D2C brands to giants like Swiggy, CRED, and Facebook India—everyone uses Razorpay.
The Numbers Speak
As of FY2024:
- Processed Transactions Worth: $150+ Billion annually
- Revenue: ₹2,068 crore from payments business
- Team: 2,000+ employees
- Serving: Over 10 million merchants across India
The company is now preparing for an IPO, likely in 2026, and focusing on achieving group-level profitability.
Razorpay’s Global Ambition
While Razorpay’s heart lies in India, it has begun expanding to Southeast Asia. Their recent operations in Malaysia and Singapore mark a bold new chapter. Unlike some competitors, Razorpay isn’t chasing global glamour—it’s solving local problems at scale, wherever it goes.
Their recent AI tools, launched at FTX 2025, show how the company is gearing up for the next decade: automated onboarding, smart reconciliation, and AI support agents.
Lessons from the Founders
- Scratch your own itch – The best businesses solve real pain points you deeply understand.
- Start small, but think big – From a simple payments API to a full-fledged financial ecosystem.
- Build trust through simplicity – Razorpay won by simplifying finance for everyone.
- Stay agile with the times – From paper-based banking to AI-powered fintech.
- Culture is a moat – Razorpay remains grounded, transparent, and mission-driven.
Final Word
Razorpay’s journey isn’t just a fintech success story—it’s a reflection of what modern India can build when technology meets purpose. With its IPO on the horizon and AI-led products shaping its future, Razorpay continues to inspire a new generation of Indian entrepreneurs to solve India-first problems with global potential.
Whether you’re a solo founder, D2C brand, or large enterprise—Razorpay is powering the financial backbone of modern business in India.
