Razorpay has launched a transformer-based AI foundation model Vulcan built to expedite digital payments. The IPO-bound startup claims that the model can make every digital payment more reliable and safer by scoring routes in real-time and flagging fraud that becomes visible across multiple merchants after it is in production.
Built with NVIDIA and AWS technology, Vulcan combines Razorpay’s payments data with NVIDIA’s accelerated computing and AWS’ cloud infrastructure.
Vulcan is a proprietary, ground-up model, with both its architecture and training data owned by Razorpay. The startup frames it not as an LLM, which understands text, but as a system that learns the movement of the money.
The model learns from the entire payments ecosystem’s data points and keeps improving with every transaction it processes, instead of solving one narrow problem at a time.
The startup claims that Vulcan is trained on approximately 3 Tn data points across 4 Bn payments and learns from roughly 3,000 signals per transaction. With this, it understands the complex movement of the financial journey at scale.
Razorpay reports early results from deploying Vulcan’s components on live transactions. According to the company, the model has delivered:
- An 8-10% improvement in payment success rates
- An 8X increase in international card frauds detected and stopped
- A 5X rise in fraudulent or disputed transactions identified, without adding to the number of alerts
- 40% more shoppers seeing their preferred UPI app at checkout, helping complete an additional 1-2 lakh purchases every month
“Every payment teaches the system something that makes the next payment better. That’s what makes this feel less like a product launch, and more like the starting point for how payments in India keep getting better on their own, for years to come,” CEO Harshil Mathur said.
While Razorpay claims to be the first Indian player to introduce this offering, global incumbent Stripe also has previously launched a payments foundation model to analyse payments patterns, trained on tens of billions of transactions, to learn and boost performance and help its customers grow revenue.
The launch builds on Razorpay’s wider AI strategy, which saw the company include ChatGPT-native storefronts for merchants and an Agent Studio platform. The startup now claims now in use by about 200 businesses
The announcement comes at a time when Razorpay is firming up to go public on the Indian bourses. The startup took the confidential route to file its draft IPO papers in June. The fintech unicorn’s public offer size is expected to be in the range of $600-700 Mn and could value it in a range of $5-6 Bn, lower than its last private valuation of $7.5 Bn.
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay offers a full-stack payments and financial services platform, offering payment acceptance, disbursals, lending and business banking solutions. It has raised over $800 Mn in private equity since inception from the likes of Y Combinator, Tiger Global Management, Ribbit Capital, Lightspeed, among others.
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