RazorpayX - Source to Pay (S2P)

🫤 Does your Finance team struggle with lack of decentralization as you scale?

Do you always work in stress mode to manage vendor payouts and invoices?

Do you struggle with compliance / complete visibility and control over your Budgets and Spends?

RazorpayX S2P - your ONE STOP SOLUTION to gain financial control

Elevator Pitch:

RazorpayX Source to Pay (S2P) automates India’s complex procurement lifecycle - vendor onboarding, invoicing, tax compliance (GST/TDS), and payments - all into one platform. Cut costs, eliminate manual errors, and accelerate cash flow with real-time insights. Ideal for Enterprises and SMBs seeking efficiency, compliance, and vendor trust.

Scale faster as you manage your finance smarter!

RAZORPAYX - S2P

USER CRITERIA

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ICP Prioritization

• Buyer - CFO / Business Owner / Founder
• Influencer - Finance Manager, Procurement Manager, Admin Head
• Blocker - CFO
• User - Finance Team , Admin Team, Procurement Team (Depending on ICP & Segment/Domain/Use case)

From the Prioritization Table, we zero in on Enterprise Customers and Mid Market 2 customers for acquisition

WHY Enterprise & Mid-Market 2 Customers?

1. ENTERPRISES

• Compliance and Audit are primary factors - Reduces errors and improves efficiency.
• Automated workflows help decentralize work of Finance team - Enables better communication and engagement between multiple teams for complex enterprise needs.
• Seamless Vendor Onboarding with org wide process digitization

2. MID MARKET 2

• Managing Vendor Relations and Staying compliant are primary factors - On time Vendor Payments, Friction free onboarding.
• High ROI for User - Be it admin or procurement head, product empowers teams to scale easily with automated processes
• Integration capabilities - Integrate seamlessly with Tally & other associated tools for All in One solution to scale.

Some factors to understand ICP selection of Mid-market & Enterprises

💡S2P solution modules like Automated workflows and Digitized onboarding help

companies cutdown on processing time and significantly reduce operating costs of the

company, at the same time enabling them to be better equipped with compliance and reduce the risk of Fraud.

💡With adoption of S2P solutions, companies' setup themselves for better adoption to

AI/ML tools with analytics and data acting as direct enablers of the solutions

🔔 SMEs reduce compliance costs by 40% with e-invoicing as per EY GST 2024 survey.

All these indicate adoption of digital solutions like S2P helping SMEs and Enterprises with either

reducing process time by X amount of days, or enabling them with improved operational

efficiency leading to Y amount of money saved in cost center.

RazorpayX - S2P

RazorpayX Source to Pay is an integrated solution that manages the entire procurement lifecycle, from sourcing vendors to making payments. It combines vendor onboarding, procurement automation, approval workflows, payout processing, tax payments, and ERP integrations into a single platform. The product aims to simplify accounts payable and vendor payments, ensuring efficiency, compliance, and cost control in procurement operations

Stage of the Product

S2P is in post pmf-scaling stage ; currently needs acquisition experiments to scale the product and go from a revenue of INR 1 Cr to 7 Cr in next 12 months.

Features

• Advanced Custom Workflows: Multilayered approval workflows tailored to organizational needs.
• Vendor Management: A self-onboarding portal for vendors, enabling KYC and document sharing.
• Automated TDS Calculations: Simplifies tax compliance with automatic TDS deductions on invoices.
• Real-Time Accounting Integrations: Syncs with accounting software like Zoho Books and Tally for seamless reconciliation.
• Input Tax Credit Optimization: Identifies GST ITC risks and errors, helping businesses recover credit dues

USP of the product

1. End-to-End Integration: Combines sourcing, procurement, invoicing, and payment processes into a single platform, eliminating the need for multiple tools.
2. Customizable Workflows: Offers advanced, rule-based approval workflows that can be tailored to specific organizational requirements.
3. Automation and Efficiency: Automates repetitive tasks like TDS calculations, invoice matching, and vendor onboarding, reducing manual effort and errors.
4. Real-Time Visibility: Provides real-time data sync and analytics, enabling better decision-making and spend control.
5. Compliance and Risk Management: Ensures GST ITC compliance, minimizes fraud risks, and optimizes tax credits.
6. Vendor-Centric Features: A self-service portal for vendors improves communication and reduces onboarding friction.
7. Seamless Integrations: Works seamlessly with popular accounting software like Zoho Books and Tally, ensuring accurate bookkeeping and reconciliation

Value Prop of S2P

• Enhance Cash Flow: automate payments and optimize tax credits, improve cash flow management
• Reduce Operational Costs: Automation minimizes errors & streamlines processes, leading to significant cost savings
• Build Strong Vendor Relationships: Timely payments & transparent communication foster trust & long-term partnerships
• Audit & Compliance: Mitigates penalty risks - through automated tax filings and audit trails. With India’s evolving GST framework, it's critical for orgs to adhere and stay updated.

Core Value Prop - Solving for the Customer

RazorpayX is a dynamic platform for businesses looking to optimize their procurement and payment processes. Source to Pay, with its integrated approach, advanced automation, and focus on compliance makes it a valuable solution for enterprises, startups, and SMEs alike. By leveraging this platform, Finance teams can achieve greater efficiency, faster processing, better cost savings, and also achieve a high degree of vendor satisfaction.

Identifying the factors that lead to defining TAM, SAM, SOM

Market Research: Trends

CALCULATIONS

TAM

MSME's in India as per data = 42 Mil

Mid market 2 ~> 10% = 4 Mil

Enterprise market ~> 5% = 2 Mil

TAM = Total # of Customers x ARPU

TAM = 6,000,000 x 1000$

TAM = 6$ BILLION

SAM

Assuming 70-75% of companies are intending to manage with ERPs and other tools, the market opportunity stands at 25%.

This means my target customers now stand at 1.5 mil.

SAM = 6$ Billion x .25

SAM = 1.5$ BILLION

SOM

Assuming S2P targets 20% of SAM with the PMF in place for early scaling -

SOM = 1.5$ Billion x 0.2

SOM = 30$ MILLION

Designing Acquisition Channel

We will consider the following Acquisition channels

1. Content Loops
2. Referral program

Reasoning behind this particular prioritization -

• From our ICP framework, we understand that the Decision Makers / Influencer / Users of S2P are from Finance Teams & Procurement / Admin Teams.
• Since paid channel is not an option currently, we will prioritize continuous engagement with content touchpoints to support Marketing & Sales Initiatives.

Content Loops

• With a growing global market trend for S2P solutions, and an open-ended advocacy by the Govt bodies (GST Council etc.) for rapid digitization in the Fintech and Tax, Compliance segment - It presents a great opportunity to build content strategy around the Need for S2P, the Benefit of S2P, the first mover advantage to AI solutions with Automated workflows and Digitized processes in P2P.
• Every CFO today is posed with a question of how they intend to leverage AI in their ecosystem - S2P platform should be their go to solution and act as the steppingstone into this new technology wave. Getting Industry leaders to position the product for the future is a great primer to build product positioning and marketing.

Referral Program

• It's important to note that some of the target ICPs already use RazorpayX's existing products.
• S2P is a relatively new product along with many other products of RazorpayX. To initially build the pipeline and reach the target of INR 10 Cr in 12 months, it makes sense to structure an internal referral program to target existing RazorpayX customers and cross sell S2P product with minimal CAC.
• Also, S2P offers integrations with existing tools like Tally, Zoho etc. A referral program for System Integration partners is a clear pathway to acquire more customers and expand revenue generation.

Organic Channel

(Understand the existing organic channel strategy for your product and highlight the success and failure thereon.
Provide your suggestions and devise new strategies.)

Step 1 → Conduct keyword research on Google, Amazon, Youtube, Quora etc.
Step 2 → Collate all your insights from all your searches.

Organic Research -

No SEO optimization-

Content Loop

(Keep it simple and get the basics right)

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Step 1 → Nail down your content creator, content distributor and your channel of distribution
Step 2 → Decide which type of loop you want to build out.
Step 3 → Create a simple flow diagram to represent the content loop.

Content Loop Experiments:

Experiment: Live Webinars on LinkedIN (Bottom up approach)

Understanding the audience:

The target audience are not decision makers, but Influencers and Users i.e. Procurement Heads, Admin Heads, Mid-Level Finance Managers, etc.

Majority of these ICPs wish to stay up to date with Industry trends and practices, irrespective of whether their organization practices/adopts it or not.

Why do we believe they will join the Webinar? The BRAND credibility of RazorpayX and its products.

APPROACH

👉 Host Quarterly Live Webinars to engage the audience and share Industry insights, Improvements, Changes, and a bit of Future foresight.

👉 A structured 30 Minute Webinar.

• 15-minute discussion comprising of key problem-solutions from Industry (Automating Workflows, Compliance, Digital Vendor Onboarding) coupled with 1 or 2 takeaways
• 5-minute product demo on how S2P is aligned in full scale enablement.
• 10-minute QnA with RazorpayX experts.

To make this more aligned and valuable for the participants and also close the loop - we will make these webinars Register only, a closed-door event where in the webinar attendees get an exclusive summary of the session along with a quarterly S2P report detailing take aways and an industry pioneer's guest column.

Hook: Industry Trends and Best Practices
Generator: S2P CX team / Biz Team and Product team

Distributor: S2P team, ICPs (on LinkedIn, WhatsApp, Email)

Experiment: Podcasts with Enterprise & Mid-Market CFOs (Top-down approach)

Understanding the audience:

The target audience are all the relevant ICP personas ; Decision Makers - CFOs, Business owners, Founders and the Influencers, End users.

Today, CFOs are answerable to the changes and challenges brought in by AI disruption and democratization.

APPROACH

👉 Recognize a voice that's well known in the target Industry / Recognize a company that is benchmarked and followed for best practices in the target Industry

👉 Understand the pulse of the audience to make the podcast more personalized and tailored - Connect the dots from Industry --> Current practices --> S2P impact --> What the future holds

👉Make sure the Podcast has content for everyone - CFOs, Procurement Heads, Admin Heads, Vendor Mgmt.

This provides an opportunity to leverage CFO's thought leadership and alignment with S2P product direction - Bringing in critical conversations around the need for SMEs & Enterprises to consider RazorpayX S2P.

Hook: CFOs take on adopting S2P solutions for Compliance, Fraud, Automation etc.

Generator: RazorpayX content team (Host: S2P Business Head)

Distributor: S2P Website, YouTube, CFO LinkedIn.

The podcasts should result in a ripple effect on the CFOs and the finance teams across industry verticals - mainly to view S2P digital solutions as a long-term benefit as against a cost burden in the short term.

We are detailing Referral & Partner program for two sets of personas.

a. Key Account Managers of RazorpayX

b. System Integrators (SIs), IT Solution Providers (Tally, ERP etc.)

Referral Program: Key Account Managers

Why KEAs?
Key Account Managers already manage existing clients with RazorpayX products.

Leveraging KAMs to cross-sell makes sense because they have established relationships with the businesses.

Existing trust with clients reduces acquisition costs and Bundling S2P with existing products like PG / Cards increases account retention.

Rewards / Incentives 🤑

Reward:

Depending on deal size - Fix Commissions for each successful referral

Ex: 1L-5L (5%), 5L-15L (6%), 15L-25L (7.5%)

Additional Incentive:

For every upsell of feature (Vendor Module, Compliance Module, GST Module etc.), 2% commission.

Flat 25K for top 3 performers every Quarter.

Tracking

👉 Set up a Dashboard to track and reflect referrals

👉 Create S2P referral tag on CRM to build deal flow.

Action Plan

Training - Conduct S2P Workshops, Trainings for KEAs. Share Decks for quick access.

Creatives - Build Battle Cards, Case studies / Success Stories for S2P positioning & enablement.

Review - Weekly Sales cadence for first 45 days to understand Challenges / Responses / Changes / Iterations.

Partner Program: System Integrators, IT Solution Providers

Why SI, IT Solution Providers?

System Integrators and IT Providers offer complementary solutions, say Tally, Zoho, ERP solutions - so integrating S2P into their offerings could add value for their clients.

They address the same ICPs as us. We have an opportunity to tap into their client networks

SIs can embed our S2P solutions into their offerings to partners, there by accelerating our Product Integration sales rapidly (Integration with Tally, Zoho)

Rewards / Incentives 🤑

Flat Commission of 7-10 % of Annual Contract Value for 1st Year (Higher commission = High Motivation). Helps you validate if this acquisition channel experiment works or not.

For multi-year contracts or Renewals, consider additional commission of 2% with flat commission

For Product Integration Sales, consider additional incentive of 1%

For higher ticket size deals - say 25L and upwards, consider additional commission of 1-1.5%

Tracking & Expectation Setting

👉 Referral Time period to be capped - Any SI client referral must be onboarded within 60–75-day period.

👉 For SIs and IT Solution Providers, the Average order Value (AOV) of a client must be INR 5L and above.

Action Plan

Provide complete Tech support along with APIs or SDKs relevant for target clients.

List them as a Partner on S2P platform website - Post 90-day partnership window or post 3 successful referrals.

REVIEW or NEXT STEPS

Pilot the experiment with select 10 KEAs and 10 SIs.

Run for a quarter and evaluate the pilot. Monitor results and refine targets accordingly.