Hyderabad: Hyderabadis are the most digitally savvy people with the online transactions growing rapidly in the city as well as the State. According to a survey by financial technology company Razorpay, the city stands second in digital payment adoption with Telangana is the fifth highest State. Analysing the transactions done on its platform from January to September 2019, Razorpay that UPI was the most preferred platform with 142 per cent growth in that period.
The report titled The Era of Rising Fintech stated that the digital payment transactions in Hyderabad grew by 9 per cent from first quarter to second quarter of financial year 2019-20. It also identified that in the person to merchant segment, credit and debit cards were the highest contributors with 41 per cent share, UPI and Netbanking contributed 39 per cent and 18 per cent respectively in July-August-September (JAS) period.
In terms of sectors that have contributed to Hyderabad’s digital transactions in JAS, the report points out financial services, food and beverage, and utilities are the top three sectors with 23 per cent, 18 per cent and 10 per cent contribution. Other than Hyderabad, the highest number of digital transactions was seen in Secunderabad, Khammam, Karimnagar, Warangal and Paloncha.
Razorpay CTO and co-founder Shashank Kumar said, “Telangana is growing at an exponential pace and has recorded a GSDP growth of 14.8 per cent and fintech in Hyderabad has evolved much beyond just accepting payments to now being transformational and impactful. The collaborative effort of the government and financial institutions will significantly aid growth in Hyderabad.”
Razorpay targets 10 lakh merchants by 2020
Converged payment solutions company Razorpay is looking to increase its merchant base on its platform by next year. The company that helps businesses with comprehensive and innovative payment solutions plans to have 10,00,000 merchants on its platform from the current 6,00,000 businesses. Started in 2014 as a payment gateway to solve operational and technology integration problems around payments, Razorpay has evolved to become a full-stack financial services company with offering such as Razorpay Capital – lending arm — and Razorpay X – neo-banking platform.
“Going ahead, we expect growth to come from tier 2 and 3 cities as the businesses in those towns are warming up to the idea of digital payments. Also many of these businesses in these cities are in need for digital payment solution that is technology-driven and our company provides that platform,” said Shashank Kumar, co-founder and CTO, Razorpay.
The company has received $105 million investment so far in the last five years of its operations from investors like Tiger Global, Matrix Partners, YCombinator, Sequoia India, Ribbit Capital and MasterCard. However, Kumar informed that they are not looking at raising any funds in the near future. Razorpay has clocked a growth rate of 15-20 per cent month-on-month and is targeting to increase the revenue five times by the end of next financial year.