Preparing CFOs for the Future with AI Technology
Razorpay is enhancing its business banking platform, RazorpayX, by using artificial intelligence (AI) to help chief financial officers (CFOs) save time managing their financial operations. As the fintech giant in India with a valuation of $7.5 billion prepares for a public listing soon (within 18 months), the company wants to develop a unique position in the evolving neobanking ecosystem.
At present, RazorpayX processes over 5% of India’s digital money moved through the Immediate Payment Service (IMPS) at a pace of $30 billion worth of annualized transaction value and an impressive year-on-year growth rate of 85%. It combines a range of important financial functions from cash flow forecasting to payroll reconciliation which makes RazorpayX Razorpay’s fastest growing business and a key component of the company’s upcoming initial public offering (IPO).
Harshil Mathur, CEO and co-founder, explains, “Our goal is not to replace CFOs but to support them. RazorpayX enables CFOs and finance leaders to gain actionable insights without the need for large teams, helping optimise decision-making.”
Leveraging AI capabilities developed in partnership with Opfin, RazorpayX offers an end-to-end automated payroll system that ensures compliance, identifies errors, and predicts financial risks in real time. Machine learning models enhance invoice-to-transaction reconciliation, reducing manual efforts by over 80%, while the recently launched AI-powered ‘Know Your Payslip’ chatbot enables employees to query payroll details instantly.
“Our Smart AI-driven Cash Flow Forecasting projects future cash flows based on real income and expenses, offering CFOs valuable financial decision support,” adds Mathur.
Over 50,000 clients, including marquee names like Swiggy, Meesho, Cred, Upstox, and Bharti AXA Life Insurance, rely on RazorpayX to simplify their financial workflows. Notably, 70% of India’s unicorns use the platform for faster, smarter financial operations. RazorpayX processes 1.7 million salary payments monthly, making it one of India’s largest payroll service providers.
Among its customers is gaming platform Zupee, which utilises RazorpayX’s AI-driven routing engine to process reward payouts to millions of users within seconds, maintaining a success rate exceeding 99.8%. Recently, Razorpay also introduced the RazorpayX corporate credit card, in collaboration with Mastercard, RBL Bank, and Yes Bank, offering credit limits up to ₹2 crore for businesses.
IPO Outlook and Growth Trajectory
Mathur highlights RazorpayX’s rapid expansion, noting it is outpacing the core payments business and contributing increasingly to the company’s revenue. “Two years ago, payments accounted for 90% of our income. That has now reduced to 75%, with RazorpayX and other services making up the remaining 25%. We expect this to shift further to a 70:30 split in the next 12 to 18 months,” he said.
Founded in 2014 by IIT Roorkee alumni Harshil Mathur and Shashank Kumar, Razorpay reported a 9% revenue increase to ₹2,501 crore for FY 2023-24, with net profits soaring fivefold to ₹34 crore. The firm manages an annualised total payment volume of $180 billion and aims to reach $1 billion in revenue by 2030.
Interestingly, the tighter funding environment has spurred optimisation at RazorpayX. “When funding is abundant, optimisation often takes a backseat. The last few years have taught us that capital now flows primarily to companies that demonstrate efficiency and prudence,” Mathur observed.
Razorpay competes with global fintech leaders such as Stripe, PayPal, PayU, and Paytm. Its expansion into RazorpayX also places it in competition with traditional banks that have historically dominated regulated financial services in India.
“In payouts and disbursals, we are clear market leaders, and our AI capabilities further set us apart,” said Mathur. The company maintains a 150-strong data team dedicated to extracting actionable insights from RazorpayX’s extensive datasets.
Global Expansion and Regulatory Tailwinds
Mathur views recent regulatory changes by the Reserve Bank of India (RBI) positively, especially the clearer guidelines that enable players like Razorpay to operate more effectively. The RBI’s new ‘payment aggregators — cross-border’ framework now permits firms to facilitate international payments, opening new avenues for Razorpay’s global ambitions.
“We are actively expanding into cross-border payments, enabling seamless international disbursements and collections as part of RazorpayX’s growth strategy,” Mathur said.
As Razorpay prepares for its IPO, its AI-driven RazorpayX platform is set to be a key growth driver, reshaping how Indian businesses manage their finances in a rapidly evolving fintech ecosystem.
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