1 min read.Updated: 23 Nov 2019, 05:30 AM ISTSalman SH
The deal will allow Razorpay to roll out a new HR automation product mainly for payroll process
The digital payments startup, along with its banking partner RBL, introduced a new corporate credit card targeted at startups
Digital payments platform Razorpay has acquired cloud-based payroll management startup Opfin, a top company executive said on Friday, without disclosing the amount. Separately, it has launched two new financial products aimed at businesses, freelance workers and home-based entrepreneurs,
Harshil Mathur, chief executive, Razorpay, said as part of the transaction, the Opfin team will join Razorpay, and its product stack will be integrated directly into the company.
The acquisition will allow Razorpay to roll out a new HR automation product, primarily for the payroll process. It will also complement RazorpayX’s B2B banking product, which is a neo-banking platform targeted at businesses and corporates.
The digital payments startup, along with its banking partner RBL, introduced a new corporate credit card targeted at startups, and small and medium enterprises (SMEs). It seeks to solve challenges around access to credit, short-term credit, reconciliation and expense filing for businesses.
The corporate card will provide businesses with a credit line of ₹50,000-25 lakh for 50 days. Considering that SMEs contribute about 6.11% and 24.63% to the country’s gross domestic product (GDP) via manufacturing and service sectors, respectively, the company aims to mobilize credit for about 40% of businesses across India. Besides, Razorpay also launched an integrated payment support solution for freelancers, consultants and other unregistered business, such as tutors, gym instructors and online sellers on Instagram, Facebook, and other platforms. According to Razorpay, India is the largest freelancer market, with one in every four freelancers in the world being an Indian.
“Starting today, businesses will enjoy the convenience of smart financing—the new additions to the product suite will make it easy for new-age companies to manage finance whenever they need it, however they need it, at the click of a button. With solutions like these, our desire is to take fintech to it’s next level for all our partner businesses and their consumers," said Mathur in a statement.
Founded by Mathur and Shashank Kumar, Razorpay is part of a well-known Silicon Valley tech accelerator, Y Combinator. Tiger Global, Matrix Partners, Y Combinator and Mastercard have invested around $31.5 million through the startup’s Series A and B funding rounds.