Digital Payment Platform Razorpay Launches Forex Service for Startups

To assist startup owners return venture capital earned abroad to Indian bank accounts at competitive exchange rates and streamline the compliance process in accordance with Indian rules, the digital payments platform Razorpay Launch Forex service which is known as foreign exchange solution. This is Razorpay’s second international payment option that enables small companies to accept payments from clients abroad.

The regulator’s decision to prohibit Razorpay from adding new merchants to its payment gateway product in December of last year and its request for a system audit report as part of the license’s final authorization process occur at the same time as the introduction of the brand-new product. In July of the prior year, the Reserve Bank of India had given it an in-principle approval for its payment aggregator licence. Other payment firms including Paytm, PayU, and Cashfree have also banned the onboarding of new merchants.

Over the past few months, Razorpay has actively worked to diversify its revenue streams away from its main payment services. Already 25% of its entire revenue comes from its loan and neobanking activities, Razorpay Capital and Razorpay X. It is predicted that the revenue share of these goods will rise to 40% in the next 12 months. The FX programme offered by Razorpay’s digital banking solution Razorpay X, according to the company’s chief business officer Rahul Kothari, will enable startup owners to reduce the time it takes to get their money back from up to two months to just 48 hours.

We routinely communicate with our business users to learn about their problems, and as a result we were aware that the processes for sending money back to India were deficient. Paperwork was a problem for modern businesses since they found it to be challenging. According to Kothari, companies frequently needed two months to complete the process because they were concerned about incurring fines from the RBI if they failed to submit the required papers.

Through its currency service, Razorpay aims to give businesses a single-window view of their incoming money movement simplify the entire documentation process boost transparency and reduce fear. In addition to currency rates, Razorpay’s analysis discovered that, depending on the venture capitalist, 2-4 percent of the financing amount could occasionally be lost to administrative expenses and conversion fees. Additionally, a team of qualified FX service experts has been formed to help the firm owners throughout the procedure.

In order to provide the services, the payments and digital banking platform has teamed up with RBL Bank. These include opening current accounts for these local business owners and small entrepreneurs as well as providing cheap FX rates. While Kothari highlighted that the current plan is to cross-sell a number of current things to new consumers choosing the FX service it intends to monetize the service in the coming months.

After using the FX service firms have apparently also opted for Razorpay’s payroll option according to our tests he noted. Since it started running FX sales pilots in October of last year, the company has already helped 15 companies with the transfer of Rs 100 crore in funds back to India. These businesses include the neo-banking platform Coupl, the savings website Tortoise, and the healthcare industry training company Virohan. The platform wants to scale its offering to 100 organizations by the end of this quarter and it wants to help 1,000 businesses annually. It plans to aid in the clearance of Rs 400 crore in monies that are returning to India over the next 12 months.