Razorpay bets on offline, overseas business ahead of IPO
Mint. "In India, offline is a much bigger market, and that is our big push," said co-founder and chief executive officer Harshil Mathur. In August 2022, Razorpay entered the offline segment through the acquisition of Ezetap.
The company expects offline payments, which make up about 15% of Razorpay’s revenue, grow to about 30% in the next three years. Sound boxes, QR codes, tap-and-pay, POS machines are among services provided by payments companies in the offline mode. Razorpay launched several such products recently.
These include DigiPOS, a new machine that will help customers skim through offers offline like it is possible on online platforms. Razorpay is launching its own sound boxes. So far, it had co-branded POS machines and sound boxes in association with banks, with the latter's branding.
"Offline payments have not seen major disruption compared to online payments and lag behind by almost a decade," said Rahul Kothari, chief operating officer at Razorpay. The company plans to also target bigger merchants who use POS machines over just sound boxes to grow its brand presence. Razorpay is expanding its presence across Southeast Asian countries, such as Singapore.
“We are in the process of applying for a licence. But we would be working with a partner to start providing our services (in the region)," he said. Razorpay, which entered Malaysia in 2022, has seen its revenue in the region grow at 30% month on month, CEO Mathur said, adding that it “translates to an annual growth of 400%".
According to Mathur, real-time payments are starting to emerge in markets like Malaysia, which Razorpay and other players are well positioned to capitalise on. “(Such countries) ... are essentially trying to replicate what UPI did, we
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