Fintech company Razorpay announced its Series D fundraise of $100 million, which the company said has given it more than $1 billion in valuation. This round was co-led by GIC, Singapore’s sovereign wealth fund and Sequoia India, along with participation from Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners.

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Razorpay helps businesses modernize their financial infrastructure by providing automated payment and banking solutions to manage their entire money flow. The new funding gives Razorpay $206.5 million in investments since its inception in 2014, That includes its recent raise, a $75 million in Series C in 2019.

Razorpay plans to use the new funding to further strengthen and accelerate its two new product lines - RazorpayX, Neo-banking platform and Razorpay Capital, it’s Lending arm and invests in new initiatives to empower SMEs.

By FY’21, the company expects RazorpayX and Razorpay Capital to contribute to 35 percent of its revenue, with a 100% increase in the company’s count of partner businesses. The funds raised will also be used towards hiring additional 500 employees by FY’21.

Harshil Mathur, CEO and Co-Founder, said, “This news is exciting and humbling at the same time, we couldn't be more proud of what the team has achieved. It’s a confirmation of always being focussed on 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.”

Harshil added, “Over the last six months, RazorpayX, the neo-banking platform has witnessed 100 percent growth, primarily because we built the product zero-up solely from the eyes of the customers’ needs. Neobanking is a nascent but fast-developing space in the Indian market and has the potential to become the one-stop platform for a business’ banking needs. This pushes us to develop new technologies that meet the rising demand.”

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.”

Ishaan Mittal, Principal, Sequoia Capital India LLP said, “India’s digital ecosystem is seeing unprecedented growth with online shoppers expected to cross 350 million by 2025. This trend of digitization is penetrating India across social strata and geography and Razorpay is playing a pivotal role in this transformation by enabling millions of merchants to accept digital payments in a frictionless and efficient manner. They have expanded the breadth of products and solutions rapidly across payments and banking and are becoming a platform for all financial technology needs of their customers. The Sequoia India team is excited to continue the strong partnership with Razorpay and the team in this journey.”

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.

Established in 2014, the company provides technology payment solutions to over 5Mn businesses.

Founded 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. Investors such as Tiger Global, Sequoia Capital India, Ribbit Capital, Matrix Partners, Y Combinator and MasterCard have invested a total of $206.5 Mn through Series A, B, C & D funding. Around 33 angel investors have invested in Razorpay.

First Published:Oct 12, 2020 7:35 AM IST