Beyond the Whiteboard - A PM's Roadmap
In this exclusive piece, Shashank Mehta, a founding member of Razorpay, will candidly answer some of the burning questions early-stage startups have about product management.
Shashank Mehta, fondly known as SM, is a true visionary and founding member of Razorpay. As the leader of the product team, he played a pivotal role in shaping Razorpay into the powerhouse it is today, renowned for its innovative suite of fintech products. Building Razorpay from the ground up, he has witnessed the entire spectrum of entrepreneurship – from the lows of failures and mistakes to the soaring heights of victories.
Currently, on a break, SM is exploring a few spaces he can experiment and build the next big thing- something impactful and value-oriented. His eyes are on the Healthcare and SaaS spaces.
But truth be told, he is a pro at building anything that delivers remarkable experiences.
If you're just starting your entrepreneurial journey or seeking to refine your product strategy, SM's wisdom will surely enlighten you!
As one of the founding members of Razorpay, what were some of the key challenges you faced in the early stages, and how did you overcome them to drive the company’s growth?
We started as one of many, but we stood out by developing unique features that allowed us to engage in meaningful conversations with customers, capturing their attention. We took the lead by being the first payment gateway to step into the meeting room and demonstrate our seamless payment experience. Our demo on the website set us apart further, giving them a clear understanding of the distinctive and hassle-free payment journey.
In our approach, personalisation was the key. We didn't reinvent the wheel with entirely new features but focused on the little details that reflected each brand, making their experience truly personalised and memorable.
What was your thought process as a PM for such a young startup when competing in such a cluttered and competitive industry?
There was just so much dissatisfaction in this industry, which paved the way for our startup to grow. The lengthy account approvals and challenging integrations led to high failure rates, creating an opening for us to make a difference. We recognised this opportunity to address these pain points using cutting-edge technology in a fiercely competitive market. Looking back, our core strategy during the early days centered around quick onboarding and seamless integration.
Being involved from the early days, what are the most valuable lessons you learned about building a successful startup, and how have those lessons shaped your approach to entrepreneurship?
Among the countless lessons learned, one that truly resonated with me was when we were in the scaling phase. Many enterprises demanded highly specific features tailored to their organisation's needs. The pressure to meet sales targets for these customised features was immense, but we made a bold decision to stand firm as a product company. We firmly believed in developing products with broad applicability across a larger segment of users.
In such critical situations, we adopted a philosophical approach, staying true to our core values and what we believed was the right course of action. So, be clear about what type of company you’re building. This will shape how you design the company. Sticking true to principles is also essential, keeping in mind long-term growth.
How do you approach the process of ideation and product development? What methods or frameworks have you found effective in translating ideas into successful products?
Approaches vary significantly from stage to stage. What you do during the early, growth, and extraction stages differs significantly. In the early stage, before achieving Product-Market Fit (PMF), it's crucial not to confine your product to a specific function. Instead, get out there and engage with as many people as possible. Trust your instincts, comprehend user needs and preferences, and set milestones accordingly.
Hiring Product Managers to build the product in the early days can be a red flag. At this stage, everyone should be involved in building the product. It's best to establish frameworks and segments in later stages when multiple stakeholders are involved.
As a product strategist, what key factors do you consider when prioritising features and functionalities for a product?
Meeting user needs: Address the stated needs that are pretty straightforward and can help improve the customer experience.
Uncover unstated needs: Beyond their explicit requests lies an opportunity to revolutionize their experience by introducing features they didn't even know they needed.
Prioritize with purpose: To build something extraordinary, prioritize features strategically. Consider their impact on customer acquisition and retention. Tailor specific parameters based on your domain, business goals, and product vision.
Changing the already-existing Mental Models: Generative AI is a prime example of how product innovation can challenge and transform customer mental models. By understanding the needs beyond what customers explicitly ask for, you have the potential to create revolutionary solutions that redefine user experiences.
Intuitive understanding: Trust your instinct to drive product innovation that exceeds customer expectations, setting your product apart from the competition.
Product-market fit is crucial for startup success. How did you validate and iterate on Razorpay's product suite to ensure it met the needs of your target customers?
I acknowledge the significance of Product-Market Fit (PMF) in the startup journey. However, in the beginning, our primary focus was on acquiring customers and driving volumes. We defined one north star metric to lead people toward our goal. While this approach had its fair share of pros and cons, we chose to prioritize volume as a key metric and made occasional iterations to foster growth.
As we approached the maximum number of our target customers, we recognized the need for evolution. Consequently, we shifted our strategy and began embracing a new phase in our product-market journey.
Scaling a startup brings its own set of challenges. What strategies did you employ to scale Razorpay's operations effectively, and what were some key learnings from that experience?
During our scaling phase, we encountered numerous challenges, leading to various mistakes. Rapid growth brings its share of complexities, and we made the error of aggressive hiring without implementing proper processes and structures. This left many feeling lost and disconnected.
Learn from our experience! Cultivate a solid company culture and be mindful of the processes you implement.
Things may not always go as planned, so ensure clarity in everything you introduce, whether it's a new team, feature, or product.
Emphasize key metrics but prioritize building a solid culture from the start. A healthy culture fosters innovation from every employee, paving the way for a truly generational company.
Based on your experience, what are some common pitfalls or mistakes that early-stage founders should be aware of, and how can they avoid or overcome them?
The one that comes at the top- Don’t grow or hire until your PMF. To create that ultimate product, it’s highly necessary to go through multiple iterations. And, when you hire 20-25 people- with every iteration, more and more people start losing faith & question your strategy. So, keep a small team initially!
The magic of product management lies in identifying the unspoken desires of your customers.
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