Context:
RazorpayX, the business banking arm of Razorpay, has introduced a new Corporate Credit Card tailored specifically for startups—an underserved segment in India’s financial ecosystem.
Key Highlights
- Product Name: RazorpayX Corporate Card
- Launched In Partnership With:
- Mastercard
- RBL Bank
- YES Bank
- Target Audience: Early-stage and growth-stage startups
- Key Features:
- Credit limits up to ₹2 crore
- No collateral required
- No personal liability (founders’ personal credit scores/assets not at risk)
- Low forex markup of 2.5%
- Problem Solved:
- Over 95% of Indian startups lack access to institutional corporate cards
- Many founders rely on personal credit cards, affecting their creditworthiness
- Significance:
- Helps segregate personal and business expenses
- Closes a major credit accessibility gap in the startup ecosystem
- Promotes financial discipline and transparency
Definitions
- Corporate Credit Card: A card issued to businesses (not individuals) to help manage operational expenses. Liability lies with the business, not the individual.
- Forex Markup Fee: A fee charged on international transactions; a lower fee reduces the cost of foreign payments.
