Razorpay, the newest FinTech Unicorn and India’s leading full-stack financial solutions company, and Visa (NYSE: V), the global leader in payments technology, today announced the launch of RazorpayX Corporate Cards. These bank-issued cards will help provide relief and stabilize the financial operations of severely impacted business owners of startups and SMEs, who are grappling with a chaotic economic environment.
With a higher credit limit as compared to other corporate and personal cards, RazorpayX’s Corporate Card will empower founders to free up working capital expenses with zero personal risk and liability and a convenient repayment offering of up to 45 days of interest-free credit. After having launched Corporate Credit Cards for all businesses in November last year, Razorpay’s new card offers exclusive features, specifically designed for small business owners to weather the pandemic impact.
According to a recent Entrepreneurship Survey by GoDaddy, more than 70 per cent of Startups & SMEs saw an overall decrease in investment leading to a reduction in revenue and around 48 per cent said that maintaining cash flow was the most pressing need to help keep their business running. From restaurants to manufacturers, gyms to wedding venues, many small businesses are struggling, and owners aren’t sure how they will survive this period that has unfortunately frozen their revenues.
Striving to solve for the above challenge, RazorpayX Corporate Card is built to provide business owners with easy access to financing and improved cash flows. A first-of-its-kind, RazorpayX Corporate Card will help entrepreneurs set up recurring & non-recurring online payments and monitor monthly operational expenses such as SaaS subscriptions, digital marketing expenses, utilities, replenishing inventory and much more in a digitized and convenient manner. The Corporate Card offers business owners dynamic credit limits of up to INR 20 lakhs, and immense flexibility that they can also extend this corporate card to their employees to create a smooth reimbursement experience. It can be used to make online payments as well as purchases at a PoS in a brick-and-mortar.
Harshil Mathur, CEO and Co-Founder, Razorpay said, “We are delighted to partner with Visa and launch the RazorpayX Corporate Cards for Indian entrepreneurs. Access to financing continues to be one of the most significant challenges for the creation, survival, and growth of SMEs in all key markets. It’s unfortunate to see that over one-third of small businesses have dipped into their personal funds to stay afloat during the pandemic. Currently, most finance solutions such as bank loans cater to the strengths of large companies, leaving the large number of SMEs with limited access to financing. Financing rates are expensive and not available for all businesses. With RazorpayX corporate cards, we hope to solve the problem of access to finance for businesses owners and help improve their cash flows. The pandemic has led to a new wave of entrepreneurs and small businesses. We believe financing solutions like these will reignite innovation that can speed up the recovery of the Indian economy.”
He added, “Apart from helping manage finances for disruptive minds, RazorpayX Corporate Cards strives to make compliance and reporting much easier for a growing business that needs to focus on the core business. With RazorpayX Corporate Cards being issued by leading banks, I am certain that they will have wide acceptance and we hope to support over 100,000 entrepreneurs in the next four months.”
Shailesh Paul, Head of Merchant Sales & Acquiring, India and South Asia, Visa said, “Small and medium businesses are among the most impacted by the pandemic across the world. This segment contributes to almost 40% of India’s GDP and it is essential that we make it simpler for them to make and accept payments, and access credit, in a seamless digitized manner. We are delighted to extend our partnership with RazorpayX to launch the RazorpayX Corporate Card which will provide access to secure payments and financing for underserved small and medium business owners.”
The leading full-stack financial solutions company, Razorpay is witnessing a 40-45% month-on-month growth. This newly crowned FinTech Unicorn currently powers payments for over 8 Million businesses including the likes of Facebook, Airtel, BookMyShow, Ola, Zomato, Swiggy, Cred, ICICI Prudential among others and is all set to reach 10 Million businesses by the end of this year.