MRAA – ASSIGNMENT REPORT

POST GRADUATE DIPLOMA

IN
BIG DATA ANALYTICS

Group 15
Anmol Gilra-B2022011
Naman Agarwal-B2022029
Kushagra Bhaduria-B2022023
Chirag Zear- B2022016
 Table of Contents
1. Introduction

2. Recent Happenings

3. Industry Analysis

4. Competitor Analysis

5. Segmentation and Targeting Strategy

6. Competitive Positioning

7. Product Strategy

8. Branding and Communication Strategy

9. Distribution Strategy

10. Conclusion & Recommendations

11. References

Introduction
Razorpay is an Indian-based digital payments company that provides a variety of financial
services for businesses, including online payment gateway solutions, subscriptions, and EMI
options. The company was founded in 2014 by Harshil Mathur and Shashank Kumar and is
headquartered in Bengaluru, India.

(Razorpay Founders Harshil Mathur (left) and Shashank Kumar, Source: Economic
Times)

One of the key features of Razorpay is its payment gateway solution, which allows
businesses to accept payments from customers through a variety of methods, including credit
and debit cards, net banking, and UPI. The gateway is designed to be easy to use and
integrate with existing e-commerce platforms, making it a popular choice for small and
medium-sized businesses in India.

About the company:

 Founders:               Shashank Kumar, Harshil Mathur (CEO)
 Founded in:            2014
 Parent company:   Bigo Technology Pvt. Ltd. 
 Headquartered: Bengaluru, Karnataka
 Sector:                  Fintech, financial services 
 Website:            www.razorpay.com
 Tagline:                “Quest for Excellence”
 Key investors:       Kunal Shah, Sequoia Capital, Ribbit Capital, YCombinator,
Tiger Global, Jeff Huber                                                                                      
 Business model:    B2B
Razorpay has grown rapidly since its founding, and the company has attracted significant
investment from venture capital firms and strategic partners. The company's success has been
driven by its focus on providing high-quality, user-friendly financial services to businesses in
India, which has helped it to gain a strong market position in the country.

Overall, Razorpay is a leading digital payments company in India, offering a wide range of
financial services to businesses of all sizes. Its payment gateway solution, subscriptions, EMI
opt. Razorpay is the only payments solution in India that allows businesses to accept, process
and disburse payments with its product suite. It gives you access to all payment modes
including credit card, debit card, net banking, UPI and popular wallets including JioMoney,
Mobikwik, Airtel Money, FreeCharge, Ola Money and PayZapp.

RazorpayX supercharges your business banking experience, bringing effectiveness,

efficiency, and excellence to all financial processes. With RazorpayX, businesses can get
access to fully-functional current accounts, supercharge their pay-outs and automate payroll
compliance.

Manage your marketplace, automate bank transfers, collect recurring payments, share
invoices with customers and avail working capital loans - all from a single platform. Fast
forward your business with Razorpay

The digital payments industry in India has seen significant growth in recent years, driven by a
combination of factors including the increasing penetration of smartphones and internet
access, the government's push for a cashless society, and the growing popularity of e-
commerce.

Razorpay operates within these digital payments industry in India and its main competitors
are Paytm, Google Pay, PhonePe, and Amazon Pay. These companies offer similar services,
such as online payment gateway solutions, mobile wallets, and UPI-based payments.

Razorpay differentiates itself by focusing on providing a seamless, user-friendly

experience for both businesses and consumers. It has a wide range of features including
recurring payments, subscriptions, and EMI options which makes it an attractive option for
businesses of all sizes. It also provides an easy integration with e-commerce platforms and
various types of payments options like credit and debit cards, net banking, and UPI.

Overall, the digital payments industry in India is highly competitive, with several large
players vying for market share. Razorpay has distinguished itself by focusing on providing a
user-friendly experience and diversifying its services, which has helped it to gain a strong
position in the market.
 RECENT HAPPENINGS
->Razorpay allows merchants to accept credit card payments via UPI

Fintech platform Razorpay announced an industry-first move to enable merchants to accept

credit card transactions on unified payments interface (UPI), as the digital payments
landscape witnesses a stupendous growth.

With RuPay credit cards being enabled on UPI, Razorpay merchants can begin accepting
credit card payments on UPI, with minimal changes to their existing setup.

The company said that move is made possible in partnership with Axis bank, which shares
Razorpay's focus on catering to the ever-evolving needs of merchants and delivering greater
convenience.

This offering is in line with the National Payments Corporation of India (NPCI) and the
Reserve Bank of India's (RBI) latest innovation in the digital space, said the company. On
October 4, the NPCI allowed the linking of RuPay credit cards with the BHIM UPI app.

"For this enablement to bring in the impact, the readiness of any payment gateway
infrastructure is essential. Under this context, Razorpay has taken the first step towards
democratising credit card transactions on UPI for our merchants," said Shashank Kumar, MD
and Co-founder, Razorpay.

Approximately 250 million Indians use UPI for their day-to-day transactions, and nearly 50
million users have one or more credit cards.

The customers of HDFC Bank, Punjab National Bank, Union Bank and Indian Bank will be
the first to enjoy the benefits of this innovation.

"This will enable users to transact seamlessly with merchants across India on credit rails in
line with the government's vision to expand the structured credit infrastructure in India," said
Nalin Bansal, Chief of Corporate and Fintech Relationships and Key Initiatives, NPCI.

According to the RBI data, the credit card industry in the country has grown steadily at the
rate of 30 per cent over the last three years.

"We believe this move has the potential to change the way customers make payments in the
next 2-3 years," said by Sanjeev Moghe who is currently the President & Head - Cards &
Payments, Axis Bank.

->Razorpay acquires start-up PoshVine to foray into loyalty, rewards

management market

Full-stack financial services company Razorpay has acquired fintech startup PoshVine to
foray into the loyalty and rewards management sector.

PoshVine, which witnessed a three times growth in FY 2022, offers payments-linked loyalty
and engagement solutions to banks, payment networks and businesses.

Since 2016, PoshVine has been offering its loyalty-as-a-service product to over 20 banks and
networks such as SBI Card, HDFC Bank, IDFC FIRST Bank, AU Bank, DBS, Visa and
Amex across India and SEA (South East Asia).

"With an increasing percentage of customer spends moving online, there is a massive

opportunity to help banks and merchants engage with their customers across the lifecycle
using payment-linked loyalty including rewards, offers, and redemption of loyalty points,"
said Shashank Kumar, MD and Co-founder of Razorpay.

With over 7.68 crore credit card holders who spent about Rs 1,13,695 crore through online
and PoS payments, there is a growing market for banks and merchants to focus on creating
unique personalised purchase experiences for end-customers and increasing customers`
spends.

PoshVine marks Razorpay`s 7th acquisition till date.

Razorpay, that has over 8 million businesses on its platform, recently acquired Ezetap, a
leading offline POS company, along with fintech startup IZealiant Technologies, among
others.

It is the second Indian company to be a part of Silicon Valley`s largest tech accelerator, Y
Combinator.
 INDUSTRY ANALYSIS

Razorpay operates in the digital payments industry in India, which has been growing rapidly
in recent years. The industry is driven by several factors, including the increasing
penetration of smartphones and internet access, the government's push for a cashless
society, and the growing popularity of e-commerce.

 Total transaction value in the Digital Payments segment is projected to reach

US$160.60bn in 2023.
 Total transaction value is expected to show an annual growth rate (CAGR 2023-2027)
of 14.16% resulting in a projected total amount of US$272.80bn by 2027.
 The market's largest segment is Digital Commerce with a projected total transaction
value of US$131.40bn in 2023.
 From a global comparison perspective, it is shown that the highest cumulated
transaction value is reached in China (US$3,851.00bn in 2023).

Digital Payment Ecosystem in India

 One of the major objectives of Digital India is to achieve “Faceless, Paperless,

Cashless” status. The promotion of digital payments has been accorded the highest
priority by the Government of India to bring each and every segment of our country
under the formal fold of digital payment services. The vision is to provide the facility
of seamless digital payment to all citizens of India in a convenient, easy, affordable,
quick and secured manner.
 During the last three years, digital payment transactions have registered
unprecedented growth in India. Easy and convenient modes of digital payment, such
as Bharat Interface for Money-Unified Payments Interface (BHIM-UPI); Immediate
Payment Service (IMPS); pre-paid payment instruments (PPIs) and National
Electronic Toll Collection (NETC) system have registered substantial growth and
have transformed digital payment ecosystem by increasing Person-to-Person (P2P) as
well as Person-to-Merchant (P2M) payments. All these facilities together have created
a robust ecosystem for a digital finance economy.
UPI: Revolutionizing Digital Payments

UPI has been termed a revolutionary product in the payment ecosystem. Launched in 2016, it
has emerged as one of the most popular tools in the country for carrying out digital
transactions. UPI is an instant payment system developed by the National Payments
Corporation of India (NPCI). It powers multiple bank accounts into a single mobile
application, merging several banking features, seamless fund routing and merchant payments
into one hood.

UPI has gone a long way in making digital payments a habit, and in firmly placing India on
the track toward a cashless economy. In the month of August 2022 alone, 346 banks were
live on the UPI interface, with 6.58 billion financial transactions being carried out for a
total value of nearly Rs. 10.73 lakh crores.
UPI currently constitutes well over 40% of all digital transactions taking place in India. It has
given a boost to small businesses and street vendors as it enables fast and secure bank-to-
bank transactions even for considerably small amounts. It also facilitates quick money
transfers for migrant workers. The technology is convenient to use as it requires minimum
physical intervention, making it possible to transfer money simply by scanning a QR code.
UPI has also been a saviour during the Covid-19 pandemic, with its adoption expanding
rapidly due to its ability to allow easy, contactless transactions.

Today, there is no doubt that the digital payment landscape in India has been transformed.
Complementing the efforts of the Government, the people of India have also displayed a
great affinity for embracing new technologies. While some of the developed countries are
facing problems due to inadequate digital infrastructure for transferring money to the
accounts of their citizens, India has emerged as a leader in the creation of digital assets,
which can serve as an example to many other nations. Further, the Government of India is
leaving no stone unturned to make India a global leader in the arena of digital payment
systems and help it attain the status of one of the most efficient payments markets in the
world. Going forward, the emerging Fin-Techs will play a key role in the further growth of
digital transactions by enabling transparent, secure, swift and cost-effective mechanisms
benefiting the entire digital payments ecosystem.

Overall, the digital payments industry in India is highly competitive, with several large
players vying for market share. Razorpay has distinguished itself by focusing on providing a
user-friendly experience and diversifying its services, which has helped it to gain a strong
position in the market. However, the company should continue to closely monitor the
industry and adapt to new technologies and trends in order to maintain its competitive
advantage.
 COMPETITOR ANALYSIS
Razorpay is a leading payment gateway in India that provides a range of payment
solutions to businesses of all sizes. In order to analyse Razorpay's competitors, we
need to consider other payment gateway providers in India. Some of Razorpay's
competitors are:

1. PayU: PayU is one of the leading payment gateway providers in India. It offers a
wide range of payment options, including credit and debit cards, net banking, and
wallets. PayU also provides payment gateway solutions for international transactions.

2. Instamojo: Instamojo is a payment gateway that caters to small and medium-sized

businesses. It offers a range of payment options, including credit and debit cards, net
banking, UPI, and wallets. Instamojo also provides solutions for businesses to create
and manage online stores.

3. Paytm: Paytm is a popular payment gateway in India that offers a range of payment
options, including credit and debit cards, net banking, and wallets. Paytm also
provides payment gateway solutions for international transactions and has a large user
base in India.
4. CCAvenue: CCAvenue is a payment gateway provider in India that offers a range
of payment options, including credit and debit cards, net banking, and wallets.
CCAvenue also provides solutions for businesses to create and manage online stores.

5. PayPal: PayPal is an international payment gateway that operates in India as well. It

offers a range of payment options, including credit and debit cards, net banking, and
wallets. PayPal is known for its security features and has a large user base globally.
In conclusion, Razorpay faces tough competition from other payment gateway
providers in India. However, Razorpay's user-friendly interface, quick onboarding
process, and innovative features have helped it stand out in the crowded market.
 SEGMENTATION & TARGETING
Razorpay is a payment gateway provider based in India that offers a variety of payment
solutions for businesses of all sizes. The company's target market includes e-commerce
businesses, subscription-based businesses, marketplaces, and others who require a robust
payment solution to accept payments from customers.

Segmentation: Razorpay's market can be segmented based on several factors,

including:
 1. Business size: Razorpay serves businesses of all sizes, including small, medium, and
large enterprises. Each segment may have different requirements and may require
customized solutions.

2. Industry: Razorpay serves businesses from various industries, including e-commerce,

healthcare, education, travel, and more. Each industry has unique requirements and
may require tailored solutions.

3. Geographic location: Razorpay primarily serves businesses in India, but it also offers
services in other countries. Therefore, the company can segment its target market
based on the location of the business.

Targeting: Based on the above segmentation criteria, Razorpay can target the following
groups:

1. Small businesses in India: Razorpay can target small businesses in India that require
a simple and affordable payment solution.

2. Medium-sized businesses in India: Razorpay can target medium-sized businesses in

India that require more advanced features such as subscription billing, recurring
payments, and invoicing.

3. Large enterprises in India: Razorpay can target large enterprises in India that
require customized solutions and advanced features such as a dedicated account
manager, multiple payment modes, and more.

4. Businesses in other countries: Razorpay can target businesses in other countries that
require a payment gateway solution to accept payments from customers in India.

5. Specific industries: Razorpay can target specific industries such as e-commerce,

healthcare, education, and travel, which may require specialized payment solutions.

Overall, Razorpay can target businesses of all sizes and industries in India and other countries
that require a reliable and robust payment gateway solution to accept payments from
customers.
 COMPETITIVE POSITIONING
Razorpay has mainly 6 strategies for its business. 

 PIS (Problem Identification) – The founders found out the fact that bringing
multiple payment gateways together is a tough task and next to impossible.
Razorpay thus found an opportunity to introduce a common payment platform
for all types of businesses. This became user friendly for both customers as
well as business owners. The customers had to just enter the amount, select
their payment mode and click submit. Transaction between a customer and a
business was never so seamless before. 

 Payment alarm – Razorpay incorporated an automatic payment reminder

system. It asks the business owners to provide a list of customers and the
amount to be paid by them on a regular basis. Razorpay then sends reminders
to such listed customers through emails, messages, etc. way before the due
date, so as to remind the customer to pay their dues. Razorpay constantly
keeps sending messages to the default customers till they close their dues.  

 Industry adaptability – For an industry to grow, you need to adapt with the

changing market trends. Razorpay studied the market and found “subscription
strategy” as the latest trend for businesses. Many companies adopted the
subscription method to let a customer pay his dues regularly every month.
Razorpay also adopted this subscription method in its marketing strategies. It
offered the customer to subscribe by paying through different payment
gateways like UPI, Credit card, Debit card, etc. 

 Banking as a service (BaaS) model/ Neo banking model – The BaaS

platform offers software which provides safe transfer of data between a
traditional bank and a fintech company. Razorpay thus launched its banking
services named Razorpay X. It helps a customer/ business to carry out all
banking-related operations like opening an account/borrowing loans/ payrolls,
etc through the Razorpay platform. It also provides a Corporate Credit card to
the user. Big companies like Dunzo. Zomato, etc. have already started using
this credit card for carrying out their banking transactions. 

 Lending strategy – Razorpay launched its another product, Razorpay Capital

through which they provide business loans to companies. Unlike the lengthy
loan processing system of traditional banks, Razorpay does not take much
time to lend money to a worthy customer. It just looks at the overall
transaction record of the customer and his CIBIL scores. The loan
disbursement takes a short span of just 48 hours. Within such a short time, all
the loan amount gets transferred to your account inclusive of taxes.  

 Dedicated customer service – Razorpay is a user-friendly company and

focuses on providing the best services to its customers. It ensures solving
 customer problems within 12 hours. The company also provides a knowledge-
based support system where a customer can find solutions to his problems on
his own. The customer has to type his query on the dashboard and suggested
answers will get displayed immediately on the screen. This has led to an
increase in customer satisfaction.     

    
Incorporation of the above strategies has provided a positive impact on the growth of the
company. The company has been growing since its launch. 

Services offered by Razorpay:

PRODUCT STRATEGY
Razorpay saw a steep increase in the volume of digital transactions from Small and Midsize
Businesses (SMBs). Online transactions in Tier 2, 3 cities started growing rapidly. Razorpay
thus plans to accelerate this digital revolution by enabling many new Indian SMBs to adopt
the digital payment mode in the coming years. With this motive in mind, Razorpay
introduced a mixture of payment solutions like MultiQR, Kiosks, Payment Handle, etc. These
products were aimed at achieving the digital goals of the company. 

->>>MultiQR – 
Razorpay has the most rugged QR code solution among its other competitors. You can
generate any number of static and dynamic QR codes using MultiQR. You can choose
different types of QR codes like UPI QR codes or credit/debit card QR codes, etc. for
accepting payments. It also allows the user to generate personalised and unique branded QR
codes for his business by incorporating his business name and logo. This promotes cashless
transactions for a business
->>>Stores – 
The Razorpay stores provide an end-to-end solution to the customer and help them
understand the company policies, create/ set up an online store to carry out transactions.
Through online stores, a merchant can customise an eCommerce store and sell his products
online. The merchant can even promote his products over social media platforms like
Facebook, Instagram, etc.

->>>Payment Handle –
 It allows the user to create personalised links to accept payments. Users can grab their link
on setting up the Razorpay account. Then just share the link with his costumes and receive
the payments. Razorpay allows you to personalise your links with your business name and
logo to create a unique identity for your business. The customers will have wide options to
pay to the merchant.  
->>>Tap on Glass – 
Enables contactless payments to the merchants through cards. Razorpay is well optimised to
run on android and other devices. Tap on Glass is well suited for offline businesses and
stores. Using this technique, a merchant can convert his NFC enabled android smartphone
into a POS machine to carry out cashless transactions. Razorpay believes in bringing
transparency and efficiency to a business.  

Razorpay is a payment gateway platform that provides online payment solutions to

businesses. The 4Ps of Razorpay are:

1. Product: Razorpay offers a range of payment solutions, including payment gateway,

payment links, subscription billing, and invoice payments. Its product is designed to
be user-friendly and easy to integrate with any website or application.

2. Price: Razorpay's pricing is competitive and transparent. It offers different pricing

plans for businesses of different sizes and needs. The pricing plans include a per-
transaction fee, a monthly subscription fee, and custom pricing for high-volume
businesses.

3. Promotion: Razorpay promotes its services through various channels, including

social media, email marketing, and events. It also offers referral programs and
discounts to incentivize its customers to refer other businesses to Razorpay.

4. Place: Razorpay is an online platform that can be accessed from anywhere with an
internet connection. It provides its services to businesses in India and globally,
making it accessible to a wide range of customers.
 BRANDING & COMMUNICATION
STRATEGY

Branding Strategy: Razorpay's branding strategy focuses on creating a modern and

innovative image that emphasizes its technological prowess and ease of use. The company's
branding strategy includes the following elements:

1. Brand identity: Razorpay's logo and brand colours are modern, bold, and minimalist,
conveying a sense of innovation and technological sophistication.

2. User experience: Razorpay's user interface is designed to be simple and intuitive,

emphasizing ease of use and convenience.

3. Marketing campaigns: Razorpay's marketing campaigns focus on promoting the

company's technological capabilities, ease of use, and customer-centric approach.

Communication Strategy: Razorpay's communication strategy emphasizes its

commitment to customer service and technological innovation. The company's
communication strategy includes the following elements:

1. Website: Razorpay's website is designed to provide comprehensive information about

the company's services and features, as well as to highlight its technological
capabilities and ease of use.

2. Social media: Razorpay uses social media platforms such as Twitter, LinkedIn, and
Facebook to engage with customers and promote its services.

3. Content marketing: Razorpay produces high-quality content such as blog posts,

whitepapers, and case studies to showcase its technological expertise and provide
value to customers.

4. Customer support: Razorpay's customer support team is available 24/7 to assist

customers with any questions or issues they may have.

5. Partnerships and collaborations: Razorpay collaborate with other companies and

organizations to expand its reach and promote its services.

Overall, Razorpay's branding and communication strategy emphasizes its technological

capabilities, ease of use, and customer-centric approach. The company's focus on innovation
and customer service helps it stand out in a crowded market and attract new customers.
 DISTRIBUTION STRATEGY
How Interacting with Merchants Helped

For most internet products, the metrics which usually matter are customer retention and the
net promoter score that indicates how favourably an existing user mentions a product to
others. But these are lagging metrics as they take time to manifest after a product is launched.
Every sector may have specific leading metrics, such as the success rate of payment
gateways, which will instantly tell the company if the product in its current avatar will be a
hit or miss.

When digital wallets and the UPI grabbed a huge chunk of digital payments, processing
refunds also became a major issue as these platforms were still trying to cope with the
volume of new users. Razorpay built a new product for faster refunds, but several merchants
continued with the earlier solution instead of paying additional fees. Not a prudent decision
as the previous product was built around older formats of payments, mostly cards and net
banking. So, the problem continued.

For online merchants and consumers, refunds getting stuck is a bad experience, irrespective
of how big or small the amount is. This issue did not reflect at first in the success rate as it
aggregates all transactions but cropped up in the lagging indicators like the NPS and the
churn rate (percentage of users who stop using a platform over time).

How did Razorpay tackle the refund lag? 

The company found that the most effective way to deal with the problem was to
communicate the same at the outset if it looked like the refund transaction would not be
successful. 

Next, Razorpay asked the merchant whether the business would like to go ahead with the
refund despite the chance of failure. This, in effect, ‘short-circuited’ the back and forth that
happened earlier where the customer and the merchant would be left bitter. Consequently, the
number of complaints on refunds reduced by 80% and the churn came down. 
CONCLUSION & RECOMMENDATIONs

In conclusion, Razorpay is a leading payment gateway provider in India, with a strong focus
on technology, innovation, and customer service. The company's branding and
communication strategy emphasize its technological capabilities, ease of use, and customer-
centric approach, helping it stand out in a crowded market and attract new customers. The
company's target market includes businesses of all sizes and industries in India and other
countries, who require a reliable and robust payment gateway solution to accept payments
from customers.

Based on this analysis, here are some recommendations for Razorpay:

1. Expand geographically: While Razorpay has a strong presence in India, the company
could benefit from expanding its services to other countries, particularly in Southeast
Asia and the Middle East.

2. Develop customized solutions for specific industries: Razorpay could further

differentiate itself by developing specialized payment solutions for specific industries,
such as healthcare or education.

3. Leverage partnerships and collaborations: Razorpay could benefit from forming

partnerships with other companies and organizations to expand its reach and promote
its services.

4. Continue to innovate: As a technology-focused company, Razorpay should continue

to invest in research and development to stay ahead of the competition and offer new
and innovative payment solutions.

5. Improve customer support: While Razorpay offers 24/7 customer support, the
company could further improve its customer service by offering more personalized
and proactive support.

Overall, Razorpay has a strong foundation for continued growth and success in the payment
gateway market, and these recommendations can help the company further differentiate itself
and attract new customers.
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3) https://www.moneycontrol.com/news/business/razorpay-buys-customer-loyalty-and-
rewards-platform-poshvine-in-7th-acquisition-9238771.html

4) https://pib.gov.in/FeaturesDeatils.aspx?NoteId=151163&ModuleId%20=%202

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