You are here: Home » Companies » News
Business Standard

Razorpay, Visa tie up to help small businesses tackle Covid impact

With higher credit limit than other corporate and personal cards, RazorpayX's corporate cards will empower founders to free up working capital expenses with zero personal risks and liability

Startups | Razorpay | Coronavirus

Peerzada Abrar  |  Bengaluru 

The company said RazorpayX’s corporate cards will empower founders to free up working capital expenses with zero personal risks and liability

Fintech unicorn has partnered with global payments technology company Visa to launch RazorpayX Corporate Cards. These bank-issued cards will help provide relief and stabilize the financial operations of severely impacted business owners of start-ups and small and medium enterprises, who are grappling with a chaotic economic environment.

With a higher credit limit as compared to other corporate and personal cards, the company said RazorpayX’s corporate cards will empower founders to free up working capital expenses with zero personal risks and liability. It would also provide a convenient repayment offering of up to 45 days of interest-free credit. Razorpay’s new card offers exclusive features, specifically designed for small business owners to weather the pandemic impact. The company aims to support over 100,000 entrepreneurs in the next four months with the new initiative.

“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,” said Harshil Mathur, CEO and co-founder, “With RazorpayX corporate cards, we hope to solve the problem of access to finance for businesses owners and help improve their cash flows. We believe financing solutions like these will reignite innovation that can speed up the recovery of the Indian economy.”

said the corporate cards will help entrepreneurs set up recurring and non-recurring online payments. The would help to monitor monthly operational expenses such as SaaS subscriptions, digital marketing expenses, utilities and replenishing inventory in a digitized manner. They would offer business owners dynamic credit limits of up to Rs 20 lakh. They can be used to make online payments as well as purchases at a PoS (point of sale) in a brick-and-mortar.

ALSO READ: TVS Automobile Solutions acquires Mahindra First Choice service business

“Small and medium businesses are among the most impacted by the pandemic across the world. This segment contributes to almost 40 per cent of India’s GDP (gross domestic product),” said Shailesh Paul, head of merchant sales and acquiring, India and South Asia, Visa “It is essential that we make it simpler for them to make and accept payments, and access credit, in a seamless digitised manner.”

According to a recent Entrepreneurship Survey by GoDaddy, more than 70 per cent of and SMEs saw an overall decrease in investment leading to a reduction in revenue. 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 frozen their revenues.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, November 26 2020. 18:00 IST