Razorpay Partners With OpenAI to Enable ChatGPT Ads for Indian Brands

Razorpay Deepens OpenAI Partnership for ChatGPT Ads

IPO-bound Razorpay announced on October 5 that it has expanded its partnership with OpenAI to help Indian brands advertise on ChatGPT through Razorpay Engage, its growth marketing platform1

1

2

2

. The fintech company will provide the technology and operational infrastructure for businesses looking to launch and manage campaigns on ChatGPT Ads. Nine brands have already been onboarded, including Tanishq, Fastrack, Traya, Tata Neu, Rivaah by Tanishq, Shaadi.com, Axis Max Life, Palmonas, and Narsee Monjee Institute of Management Studies (NMIMS)3

3

.

How Razorpay Engage Manages ChatGPT Ads

Razorpay Engage will serve as the operational layer between brands and ChatGPT Ads, handling multiple aspects of campaign execution2

2

. The platform assesses catalogue readiness, improves and structures product feeds, creates and manages campaigns, and measures and optimizes campaign performance1

1

. Razorpay has built an AI agent around ChatGPT Ads best practices to create and manage campaigns across different contexts where consumers may encounter a brand's product catalogues3

3

. The AI agent monitors campaign performance and makes ongoing adjustments, while Razorpay's team provides human oversight where required1

1

.

Why Brands Need AI-Led Commerce Infrastructure

Consumer discovery is shifting from traditional keyword-based searches to conversational interactions with AI chatbots. Users now describe what they're looking for to an AI assistant, compare options, and refine choices through subsequent conversations1

1

. "The way people discover products is changing. The next customer may not search for a product or scroll through an ad; they may simply ask an AI assistant for help deciding what to buy," said Rahul Kothari, COO of Razorpay2

2

. For brands, this creates a new channel where products need to be structured with sufficient information and context to surface across different consumer queries. Managing this process manually at scale becomes challenging, which is where Razorpay's infrastructure comes in1

1

.

Building on ChatGPT Commerce Infrastructure

The advertising push builds on Razorpay's earlier work to turn ChatGPT into a commerce channel. The company has been working with OpenAI and NPCI on infrastructure that allows merchants to create ChatGPT-native storefronts, sync product catalogues, and eventually complete purchases within the chat interface1

1

. In August, Razorpay said it was working with around 50 brands and several ecommerce marketplaces on agentic-commerce pilots3

3

. The company claims its technology can reduce the time required for a Shopify merchant to set up a ChatGPT storefront from around eight to 10 weeks to roughly 30 minutes by automating catalogue syncing and the submission process1

1

.

Agentic Payments and UPI Integration

Razorpay has been experimenting with UPI Circle and UPI Reserve Pay to enable purchases within ChatGPT while keeping payment credentials away from the AI model and requiring user consent for transactions1

1

. In October 2025, Razorpay and OpenAI piloted Agentic Payments on ChatGPT, enabling users to complete purchases within the AI environment. The pilot involved Razorpay's banking partners, Axis Bank and Airtel Payments Bank, with the initial integration being BigBasket for grocery orders through ChatGPT3

3

. All payments required explicit user consent and authentication through their regular UPI app.

ChatGPT Ads Launch Context in India

ChatGPT started rolling out ads in India at the end of August, initially covering logged-in adults on the Free and Go plans1

1

. Ad agencies WPP and Omnicom are OpenAI's first agency partners in India3

3

. Nitin Bawankule, Head of Enterprise Sales at OpenAI India, said: "ChatGPT is changing how people discover products and make decisions. Instead of searching through a fixed set of options, people can describe what they need, explore possibilities, and refine their choices through conversation"2

2

.

Razorpay's Broader AI Strategy

The partnership marks another step in Razorpay's expansion beyond its core payments business. Founded in 2014 by IIT Roorkee alumni Shashank Kumar and Harshil Mathur, Razorpay launched Engage in 2023 as a full-stack growth marketing platform offering customer acquisition, retention and engagement tools1

1

. In August 2026, Razorpay launched Vulcan, a proprietary AI foundation model designed to improve payment success, fraud detection and transaction routing, reporting an 8-10% improvement in payment success rates3

3

. In March 2026, the company launched Agent Studio, built on Anthropic's Claude Agent SDK, to automate payment operations such as failed-transaction recovery, dispute responses and subscription management3

3

.

What This Means for AI-Driven Advertising

Razorpay's push comes as other payment companies, including Cashfree and Pine Labs, are also building infrastructure for agentic commerce, suggesting that payment providers see the AI interface as a potential new layer between consumers and merchants rather than simply another checkout channel1

1

. The broader proposition is that merchants need more than visibility on AI platforms: they also need structured catalogues, AI-native storefronts and payment infrastructure that can work inside conversational interfaces. Pelki Tshering, CMO of Tanishq, noted: "Our first ChatGPT ads campaign is an interesting new chapter for Tanishq. For a high-consideration category like jewellery, understanding how consumers discover and make decisions is as important as reaching them"2

2

. Razorpay has been building these layers as it seeks to establish itself as an infrastructure provider for conversational AI-driven product discovery and AI-led commerce infrastructure.