The fintech startup Juspay doubles revenue to INR 213.3 cr- Find out how

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The startup revolution in India is no more breaking news. With a total of 111 unicorns and a massive 99,683 total startups as of 2023, India is on the right path as far as startups are concerned. Startups are emerging in different sectors, thereby bringing solutions to different problems of the population. Among all sectors, Fintech startups are leading the race in terms of most funding deals with a total market size of $ 111.14 billion as of 2023. In this blog, we uncover juspay and learn about all the components that led to this recent significant spike in its revenue.

Introduction to Juspay

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The digital payment revolution in India is surely a driving force behind the success of Fintech startups. The idea of easing payments by introducing UPI has led to a massive Rs. 126 lakh crore worth of transactions in FY22. 
 

This opportunity has also given birth to many fintech startups that facilitate UPI-based payments for their users. One such fintech startup that has been on the rise in the past few years is Juspay. The approaches and business strategies of the juspay company have doubled its revenue, which now stands at Rs. 213.3 Crore.

• Founded way back in 2012 by co-founders Vimal Kumar and Ramanathan RV, it took a long time for Juspay to make it this big.
• It is an online platform on which users can perform easy one-click electronic transactions. Juspay focuses on building fundamental products and platforms that make online commerce viable and successful. 
• The juspay company built the BHIM app which was the starting point of UPI transactions. Juspay excels in building a framework that facilitates various financial work processes. One such framework is the “Presto” framework that created the automatic OTP reading. 
• Activities such as making an online payment, choosing a digital wallet, net banking, or entering card details, all require a checkout page. These checkout pages are all powered by juspay company for top merchants in India. 
• Back in 2012, the juspay company was started behind the trending thought that the world is going to turn digital, even payments. And today in 2024, it is recording a staggering 100 million transactions a day, with a total payment value of $ 500 billion. 

The success of juspay is not an overnight story but surely involves many financial figures and working model modifications. Further, we will be learning about Juspay’s Revenue system, juspay funding rounds, and many more.

Juspay’s Working Model

Initiating its operations in 2012, the first product created by Juspay was Credit Vault. It made transactions easier by storing the card details of the users beforehand. Recently, this facility was restructured into a tokenization service, after the RBI issued its tokenization rules on 1st January 2022. Juspay works as a Software-as-a-Service model (SaaS). 

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• One of the two major products the juspay company serves to its users is JUSPAY Safe. Launched in 2014, this feature enables auto-reading of OTP, network customization in case of a slow network, bank authentication, 2FA (two-factor authentication), and thus, a smoother interface. 
• The whole idea behind the working of juspay payment gateway is to make online payments easier for merchants. Not too long ago, online payments usually consumed much time with merchants waiting for the OTP. As a result, it was found that 21% of customers obstructed the online buying process in the middle because of a complicated payment process. 
• Many other infrastructure solutions such as UPI in-app experience, UPI-on-cloud, and many other stacks for users have been built by Juspay.
• One of the best highlights of juspay payment gateway has been the creation of BHIM. This transaction app, owned by NPCI, was created by the juspay company to facilitate UPI-based payments.
• In addition, the UPI Common Library, also designed by Juspay, remains part of the app used on the customer’s side. This reliable entity safely collects the credentials of the users in encrypted form without being able to store them. 

Such valuable services offered by Juspay bettered the conversion rates of deals for many merchants and businesses. Thus, Juspay now enjoys a strong customer base that trusts juspay with all their transactions.

Reasons behind the success of JUSPAY Safe

JUSPAY Safe was launched way back in 2014. JUSPAY Safe is a web browser specially designed in the niche of online banking and payments. Ten years ago, the one-click payment system was introduced for the first time in India by JUSPAY Safe. Since then, it has acquired more and more customers through its features. With its primary motive being to digitalize India’s payments system, there are many reasons behind its success.

1. Transaction Success Rate

The success of a transaction is a very important factor when a digital payment is made. In the case of cash-based payments, transactions often have a high success rate, i.e. they are very likely to be completed. However, digital payments can have issues like network errors, bank server problems, app failure, and so on. As a result, people still hesitate to make payments (especially large values) digitally. JUSPAY Safe was able to increase the transaction success rate by working on various components in a transaction process. In JUSPAY Safe 2.0 which was recently launched, their excellent group of engineers and developers managed to improve the success rate of transactions by 10%.

2. Auto-read OTP

One-time passwords are useful in the authentication of users using their mobile numbers. However, most time processes involving OTPs can be annoying. Users need to change tabs from messages to another app many times to enter an OTP correctly. One can also make a mistake in filling the OTP if he/she doesn’t check enough times. This problem was solved by the Auto-read OTP feature of JUSTPAY Safe. With such a simple solution to this problem, JUSTPAY Safe was able to make OTP entering easier than ever. As soon as an OTP was received on the phone, this feature would autofill the OTP in the exact app, making payments and other processes more efficient for users.

3. Safe and secure transactions

The app-based payment systems ongoing in the world heavily prioritize safe and secure transactions. With more than 2 billion mobile phones engaged in certain types of mobile-based payments, safety is necessary. However, about 70% of such apps constitute a minimum of one security issue. The infiltration of malware in mobile phones through websites and third-party apps is increasing exponentially. This also increases the chances of password breaches while making UPI payments. JUSTPAY Safe on the other hand minimized such risks by improving transaction security by miles. With features such as phishing protection, it restricts fraud banking pages for the user to access, thereby, preventing any malware installation risk. In addition, the safe keyboard feature shields against any data breach while input of any sensitive information.

4. Minimal Update requirement

Various merchants who use UPI frameworks require SaaS companies like juspay to adopt various technologies and provide better services to their users. However, frequent update requirements of such services compels merchants to bring changes to their payment systems that affect user satisfaction. JUSPAY Safe is one without such frequent updates. It is fully managed by the justpay team in a way that provides one-time installation of features with minimal update requirements in the future. 

JUSPAY Performance and funding rounds

• As mentioned earlier, the Fintech sector in India grasps the largest market size with a total funding amount of INR 2 billion. India has the second largest base of Internet users which contributes largely to the fintech revenue pool. 
• Juspay’s Revenue is also included in this pool. Its YoY growth rate reached 85% in recent years which reflects its upscale pattern. In addition to that, there was an 88.5% increase in Juspay’s Revenue, i.e. from Rs. 113 crore to Rs. 213 crore (FY22-FY23). 
• With constantly working to make online payments easier and safer, Juspay now makes 100 million transactions per day which equals over $500 billion in payment value. 
• The source of Juspay’s revenue is primarily from the integration of payment platforms and their related services. The company also managed to earn INR 24 crore through interest from investments. 
• Regarding expenditure, JUSPAY expenses were primarily from employee benefits that constituted around 62% of the company’s expenditure on employees. 
• The surge in expenditure on employees was a significant 70% from Rs 126 crore to Rs 214 crore (FY22-FY23), including a Rs 54 crore cost of ESOP. Moreover, extra JUSPAY expenses on marketing, IT, legal help, rent, and overheads spiked the total expenditure by 53.8% from Rs 223 crore to Rs 343 crore (FY22-FY23). 
   

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As far as losses are concerned, Juspay managed to limit it only to a 5% increase which is considered impressive. It incurred a total loss of Rs 101 crore which increased to Rs 106 crore in FY23. Moreover, the ROCE margin saw a -21% improvement and the EBITDA margin saw an improvement of -40.9%.

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The juspay funding rounds were what brought it to the attention of the general audience. Now, let us break down these juspay funding rounds one by one. 

1. Round-1: Juspay got its first investment in 2016 by carrying out Series-A in funding round 1. The investment amounted to $5.8 million by a total of four investors. 
2. Round-2: In this Series-B of Round-2 in March 2022, juspay managed to attract a bigger $21.6 million investment. There were a total of three investors with Accel as a consistent investor.
3. Round-3: Juspay’s most recent funding round came in the Series-C of funding round-3 in 2021. This time pulling in a massive $60 million from three investors namely Softbank, Wellington Management, and Vostok Emerging Finance. 

Juspay Strategic Acquisitions

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Juspay is the leading company in the payment infrastructure setup of the country. With heavy sums of investment, Juspay’s valuation has also been on the rise. In a bold move, Justpay Strategic Acquisitions has taken place. It has acquired the company LotusPay. This all-cash deal took place on Feb 6, 2024. LotusPay was founded in 2016 and has proven its metal for merchants and banks. It is a master in NACH Debit and is a provider of cloud-based software. In 2023, LotusPay recorded about 20 million transactions per day with a total transaction amount of Rs. 20,000 crore. 

Juspay is aiming to integrate LotusPay into its system by merging NACH and Juspay’s HyperCheckout and ExpressCheckout products. This collaboration is nothing but a win for India’s future in digital payments. Juspay and Lotuspay will both look forward to bolstering India’s digital payment system and helping strengthen its foot globally.

Conclusion

Juspay as a company has been very successful in revolutionizing digital payments in India. The juspay payment gateway provides a safe and secure path for transactions to occur. The creation of BHIM, auto-read OTP, and many others by Juspay attracted service orders from top merchants in the country. With a talented and skilled team, justpay has a long and bright way to go. In conclusion, with the number of UPI users in India surely increasing immensely in the upcoming years, it would be interesting to see the trajectory of the juspay company.

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