India’s digital payment and business banking platform Razorpay has raised $160 million in a funding round led by its existing investors Sequoia Capital and Singapore’s sovereign wealth fund GIC. Other investors Matrix Partners and Ribbit Capital were also part of this funding round.
The startup entered the unicorn category in October 2020 after raising $100 million. With this latest funding, Razorpay has now raised $366.5 million as total funding to date. The company claims that it has witnessed 400% growth on its neo-banking platform, RazorpayX in its transaction volume since last year despite of the pandemic.
The Fintech major plans to use this fresh infusion of funds to scale up its lending and banking product suite, expand in international markets, and invest in new acquisitions. The startup is already in the process of hiring over 600 employees to further its growth plans. A portion of these funds will also be invested in RazorpayX to roll out new products.
According to co-founder and CTO, Shashank Kumar, Razorpay has been continuously evaluating products and technologies that could automate banking and accounting processes and in the coming year, the startup will focus on introducing new products through acquisitions and strategic partnerships. The Fintech unicorn envisions making financial infrastructure easy and available to businesses across India.
The company is looking to buy B2B financial SaaS startups in SME credit, accounts receivable and expense, and accounting and taxation segments. The online payment platform has been helping entrepreneurs get access to working capital with more than Rs 700 crores of credit disbursements per month. The company now plans to scale this up by the end of 2021 to Rs 1000 crore per month.
In the last six months, the startup claims that it has witnessed month-on-month growth of about 40-45%. Presently, Razorpay has achieved $40 billion Total Payment Value (TPV), and powers payment for more than 5 million businesses including Airtel, Facebook, Ola, Cred, ICICI Prudential, Swiggy, Zomato among others. The Fintech major plans to reach 200 million consumers by the end of this year.
Razorpay had acquired two startups in 2019- an artificial intelligence startup Thirdwatch and a payroll and HR management software company, Opfin.
Founded in 2014 by Harshil Mathur and Shashank Kumar, the Bengaluru-based fintech unicorn enables businesses to accept, process, disburse payments with its product suite.
Razorpay offers all payment modes through its platform including net banking, UPI debit card, credit card, and e-wallets such as Mobikwik, JioMoney, FreeCharge, Ola Money, Airtel Money, and PayZapp. It also offers services like vendor payments, automating vendor payments, real-time reconciliation, managing subscriptions, analytics, GST invoicing, creating and designing websites. Razorpay’s credit and banking products are offered in partnership with banks.
The startup is backed by an array of investors including Tiger Global Management, Y Combinator, GIC, Soma Capital, and Sequoia Capital India among others.