Payment gateway giant Razorpay has succeeded in raising a total of $160 million in Series E round funding from Sequoia Capital India and GIC which is based in Singapore. With the funding, Razorpay’s valuation has jumped to $3 Billion in less than six months. They will use these funding to expand in South East Asian countries like Malaysia, Indonesia, etc. & also to grow their neo-banking platform Razorpay X.
Razorpay’s valuation has risen up since the last round which was estimated a bit above $1 billion in the $100 Million series D last October. Vital investors of Razorpay like Ribbit Capital and Matrix Partners also took part in the Series E round. They also emphasised on the investor’s interest in the India’s fastest growing and eminent digital-payment industry. Razorpay is one of the fastest start-ups to see a rapid growth in its valuation.
The company is also planning to acquire an enterprise SaaS start-up and will be hiring 600 people across India and overseas which will be beneficial for them to grow their neo-banking business which helps merchants run current accounts and access credit from partner banks, processes loans worth Rs 700-800 crore every month.
As Razorpay, other fintech companies like CRED, Pine labs and Groww can be seen making visible growth in their individual valuation.
Razorpay CEO and Co-founder Harshil Mathur said “We are one of the largest payments providers in the Indian ecosystem. We want to take the learning’s we have in India to the Southeast Asian market. Before the end of the financial year, we want to launch in one or two Southeast Asian markets.”
To celebrate the company’s new milestone, Forbes India left a tweet on twitter, it said- @Razorpay’s latest funding round has catapulted its valuation to $3 billion—in conversation with @harshilmathur, co-founder & CEO on the company’s strong growth, valuation jump and expansion plans | By @ArakaliHari
.@Razorpay‘s latest funding round has catapulted its valuation to $3 billion—in conversation with @harshilmathur, co-founder & CEO on the company’s strong growth, valuation jump and expansion plans | By @ArakaliHarihttps://t.co/HrMcoENkLi
— Forbes India (@forbes_india) April 19, 2021
What is Razorpay?
Razorpay is a Bengaluru-based start-up which was founded in 2014 by two of the IIT Roorkee graduates Harshil Mathur and Shashank Kumar.
It is an online payment service provider that helps businesses automates collections through its gateway service, while helping small businesses and start-ups to manage money flow. With Razorpay, the customer/merchant has access to all payment modes, including credit and debit cards, UPI and also mobile wallets.
It is also betting big on its neo-banking platform called RazorpayX and its SME lending arm Razorpay Capital.
They have over five million online merchants, including Facebook, Airtel, Ola, Zomato, Swiggy and Cred, ICICI Prudential and Ola with a total payment volume of $40 billion.