Bengaluru based payments gateway startup Razorpay raised US$ 100 million in its latest Series D funding round. Razorpay has become the 5th Indian fintech firm to achieve ‘unicorn’ status. In 2018, online payment gateway BillDesk, Flipkart-owned PhonePe and insurtech startup PolicyBazaar, were all valued at over US$ 1 billion.
The funding round was led by Singapore’s sovereign wealth fund GIC and existing investor Sequoia India. Other participants in the Series D include existing investors Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners. The total amount of funds raised by Razorpay stands at US$ 206.5M since its inception in 2014.
The funds raised will be utilized to launch products for its neo-banking business Razorpay X and lending business Razorpay Capital. The company is seeking to double their growth in the coming year. It will also be hiring 500 people across the areas of growth, product and technology.
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay is the only payment solution in India that allows businesses to accept, process and disburse payments with its product suite. It provides access to all payment modes including credit card, debit card, netbanking, UPI and popular wallets including JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money and PayZapp.
Its business banking arm, RazorpayX aims to bring effectiveness, efficiency and excellence to financial processes. RazorpayX provides businesses with access to fully-functional current accounts, supercharges their payouts and automates payroll compliance. It’s neo-banking and lending platforms RazorpayX and Razorpay Capital, respectively, were launched in 2018.
Razorpay is currently focusing on achieving overall profitability in 2-3 years, with a long-term aim of going public. It is also looking at newer acquisitions in the business-to-business space and is in discussions with around five startups.
Its core business, online payment gateway accounts for 80% of its revenue. Razorpay claims that it serves around five million customers, including Airtel, BookMyShow, Facebook India and Sony.
By March 2021, Razorpay expects to have acquired more than 10 million customers leveraging its payment gateway offering. The company launched its corporate credit card in 2019. It also plans to expand the offering to newer businesses and corporates.
“GIC is a good long-term investor to have. Their knowledge about public markets and investment in firms like Bajaj Finserv Ltd and Bandhan Bank Ltd will help us in our journey to go public. With this fundraise, we will focus on going deeper into the Indian market and broaden our product portfolio to grow our business and achieve profitability,” said Harshil Mathur, CEO and co-founder of Razorpay.
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