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Razorpay, a full stack financial services company, has raised $100 million in Series D fundraise, giving the company more than $1 billion in valuation and an Unicorn status.
The latest round was co-led by Singapore’s Sovereign Wealth Fund GIC and Sequoia India, along with participation from Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners.
This Series D funding gives Razorpay $206.5 million in investments since its inception in 2014 and includes its recent raise, a $75 million in Series C in 2019.
2 new product lines
Razorpay plans to use the new funding to further strengthen and accelerate its two new product lines —RazorpayX, Neo-banking platform and Razorpay Capital, its lending arm and invest in new initiatives to empower SMEs.
By 2020-21, the company expects RazorpayX and Razorpay Capital to contribute to 35 per cent of its revenue, with a 100 per cent increase in the company’s count of partner businesses. The funds raised will also be used towards hiring additional 500 employees by 2020-21.
Harshil Mathur, CEO and Co-Founder, said, “This is a confirmation of always being focussed towards chasing the vision, not the competition. This funding represents a huge endorsement of our belief of powering the financial infrastructure for disruptive businesses, simplifying the entire money flow so that businesses can focus more on disrupting the Indian economy with their new ideas, products and experiences, everyday.”
Powering payments
Razorpay currently powers payments for over 5 million businesses including the likes of Airtel, BookMyShow, Facebook, Ola, Zomato, Swiggy, Cred, ICICI Prudential among others and is all set to double this to 10 million by the end of this year.
Founded in 2014 by alumni of IIT Roorkee, Shashank Kumar and Harshil Mathur, Razorpay is the second Indian company to be a part of Silicon Valley’s largest tech accelerator, Y Combinator.
Mathur highlighted that over the last six months, RazorpayX, the neo-banking platform has witnessed 100 per cent growth.
Neo-banking space
Neobanking is a nascent but fast-developing space in the Indian market and has the potential to become the one-stop platform for a businesses’ banking needs, he said. This pushes us to develop new technologies that meet the rising demand, he added.
Mathur also said that Razorpay will power payments and banking for 50 million businesses by 2025. “We will continue to make an impactful contribution to the growth of the industry, aid adoption in the under-served markets and drive new practices and a new thinking for the industry to follow. And this investment fits perfectly with our growth strategy. We are excited for GIC to join us on this journey, and for Sequoia Capital India’s continued faith in our mission to transform financial services in India,” he added.
Choo Yong Cheen, Chief Investment Officer for Private Equity at GIC, said, “India has made significant strides in establishing a digital payments eco-system and Razorpay has established itself as a clear leader, with its strong focus on customer experience and product innovation. GIC has a long track record of partnering with leading FinTech companies globally and is delighted to partner with Razorpay in its journey to transform payments and banking. We look to support Razorpay’s continued growth and its strong management team in this fast-developing space.”
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