How Fabindia achieved an unbelievable 99.5 lakh GMV boost with Razorpay's Optimizer

Picture this: a quaint artisan in a remote Indian village delicately crafting a piece of fabric, each thread telling a story of tradition and skill. Now, imagine this story unfolding on your digital screens through Fabindia, a brand that has turned the age-old tale of craftsmanship into a modern-day symphony of garments, home décor, and fabrics. With a rich legacy of over 64 years, Fabindia has risen as a titan in handcrafted marvels. Yet, beyond its stature, the brand has emerged as a lifeline for over 55,000 rural artisans nationwide, seamlessly linking their artistry to the vibrant pulse of urban markets.

Challenges in digital expansion

As the internet embraced us all, Fabindia, too, took a leap into the virtual domain, introducing its legacy to a global audience. As the Indian retail brand expanded its digital footprint, managing multiple payment gateways became a Herculean task.

Their existing analytics solution lacked insights, leaving them unaware of crucial issues such as why customers were dropping off and detailed information on the kind of payment errors shoppers faced. There was a lot that could be improved in terms of providing shoppers with a seamless payment experience on Fabindia’s online store.

Fluctuating transaction success rates and the inability to pinpoint the root causes of payment failures posed significant hurdles. Additionally, juggling payments from various sources further complicated matters, leaving the company yearning for a more cohesive solution aimed at granting them enhanced oversight over all their payment gateways (PGs).

To overcome these hurdles, Fabindia sought a more unified solution that would let them have greater control over all their PGs, with an advanced analytics dashboard where they would not just get a wealth of raw data but also actionable insights. Their goal was to gain real-time insights, streamline troubleshooting, and route transactions through the right and optimal payment gateway to ensure higher transaction success rates.

Navigating payment gateway challenges

Enter Razorpay's Optimizer, an intelligent solution in Fabindia's quest for seamless payment processing. Recently launched, Razorpay’s Optimizer protects businesses from annual losses of over Rs 7,000 cr due to transaction failures. Moreover, this platform is designed to handle over 5,000 online Transactions Per Second (TPS) at any point in time. With its intuitive analytics dashboard and AI-powered insights, Optimizer offered the artisanal marketplace a lifeline in navigating the barrage of online transactions. Gone were the days of sifting through mountains of raw data; Optimizer offered the brand actionable insights in real-time, empowering them to make informed decisions and streamline their payments.

The transformative magic of Optimizer didn't stop there. Fabindia found solace in the ability to customise date ranges, track success rates based on payment methods, and pinpoint reasons for drops below 80%. Armed with newfound clarity and control, it witnessed a surge in transaction success rates, paving the way for happier customers and a tangible boost in revenue.

“Razorpay’s Optimizer has been a good investment for our business. Optimizer is incredibly efficient and has significantly improved our transaction success rates while reducing payment processing costs. With this user-friendly tool, we've experienced seamless payment reconciliation. It's a must-have solution for any business looking to streamline their payments and checkout processes," said Nitika Sharma, Head, Customer Success, Fabindia.

The impact of Razorpay’s AI-powered Optimizer

Optimizer's impact extended beyond mere numbers. Its comprehensive error descriptions and insights related to customer behaviour streamlined the process of dissecting transaction errors. This enhanced efficiency enabled Fabindia to swiftly discern between website glitches, customer-related issues, and multiple payment attempts, leading to expedited issue resolution and reduced customer grievances. Optimizer comes with a user-friendly analytics dashboard, offering a complete overview of PG performance and transaction trends.

Another significant impact of Razorpay's Optimizer was Fabindia's access to detailed Payment Performance Reports. This empowered them to better understand their Payment Gateway rule sets, facilitating necessary adjustments to optimize transaction routing. Implementing Optimizer resulted in a straight 99.5 lakh increase in their GMV. Optimizer also helped route 5.5 lakh payment transactions. This strategic partnership led to an increase of 15% in success rates within just 12 months of implementation and fewer failed transactions, ultimately strengthening the iconic Indian fashion and lifestyle brand's reputation as a customer-centric e-commerce leader.

Tradition meets technology

As Fabindia continues to champion the cause of rural artisans and preserve India's cultural legacy, Razorpay’s Optimizer remains a steadfast ally, unlocking unparalleled growth and success in the ever-evolving e-commerce landscape.

As we look to the future, their collaborative spirit serves as an inspiration for businesses worldwide, reminding us that with the right tools and mindset, anything is possible.