Startup Sunday Season 2 Episode 13 (Paymatrix)

Are you paying 10 months’ rent as deposit whenever you get a house for rent in Bangalore or Mumbai? Searching for a house in a metro city may seem like a Herculean task; but dealing with the house owners can get even tougher. With high demands for up to 10 months’ rent as advance deposit (from which a big chunk is deducted citing “invisible” charges when the house is vacated) leaves a tenant dejected.

Whether we’re landlords or tenants, we all know how important it is to maintain a cordial relationship with the other party. One thing that often creates ripples in this relationship is rent. There are many factors that make rent the bone of contention between a tenant and his landlord. At times, a tenant might be facing cash crunch, might forget the due date or might not be able to arrange for the huge deposits required at the time of agreement.

Often times, it is not just the tenant who is at fault. A landlord might ask for an advance payment or delay the settlement of deposit. At times they are not available to take the payment. These issues arise especially when cash transactions are involved.

This Sunday, we bring you the story of “Paymatrix” an analytics-driven property rent management platform where rent management is made easy and rewarding!


To deal with the rent issues, “Paymatrix” has now emerged to be India’s Largest Rent management platform, helping thousands of individuals and small businesses to better manage, pay and collect their rent in a transparent and tax-efficient manner.

Paymatrix was founded in November 2015 after a primary research was conducted with a set of 2800 respondents. The initial research revealed the need for a system to manage rental payments/receipts. Additionally, the tenants were also looking for a solution to avail of credit for large one-time deposit payments.

A digital rent management system, Paymatrix is looking to disrupt a USD 4 billion rental property market by resolving the pain-points of tenants and landlords by formalizing and organizing the rent management system in the country.

How does it work?

Unlike the problem it is resolving, the Paymatrix platform is easy to use and understand. Just by providing a valid mobile number, KYC check, landlord’s bank account details and payment method, the tenants can sign up and start using the system.

What does it do?

While a tenant can generate rent receipts, obtain renters insurance and earn cash back and rewards on rent payment with Paymatrix, the landlords have benefits like managing rent from multiple properties, preparing documentation for the lease, property insurance and  background check on potential tenants.


The rent receipt acts as a proof of payment by the tenant to the landlord. It clearly contains the details of the rented residence address, name of the owner, period of rent etc. Paymatrix provides various online payment options like – credit card, debit card, online banking, wallet, and UPI, to the tenants. It also helps arrange for a short term loan at an interest of 11-16% during the times of cash crunch and an EMI option for the credit card. For this, the company has partnered with 4-5 banks (including Axis bank) and a few NBFCs.

The Business Model

Paymatrix works on a simple business model. The platform offers a free package and a paid package. Part of its earnings come from the convenience charge for value-added services like tenant screening and creating rental agreements. Paymatrix also caters to B2B segment in the real estate industry where it manages the collection and payment for PGs/Hostels, Co-working spaces.

Being the first of its kind; with 4250 happy customers and 2250+ registered properties, Paymatrix doesn’t have any competitor in rental payment management space in India.

Funding and the road ahead

Paymatrix invested around Rs 50 lakhs into the business, which was bootstrapped. It also raised $40,000 funding from Xceed Consulting and is now looking to raise an additional $300,000 for its geographical expansion and product development.

Going forward, Paymatrix aims to become a complete rental analytics player. Using the data points, it wants to be able to create innovative financial products like working on a rental insurance scheme which protects landlords from a default by tenant or a mishap in the house. The Paymatrix team is aiming to achieve a turnover of USD 20 million in the next one year, a target customer base of 100,000, and a presence in 17+cities.

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