Razorpay, raises $160 million in its Series E financing led by GIC, and Sequoia Capital India

SaaS News -India’s-Razorpay-raises-funds-at-$3-billion-valuation-ahead-of-Southeast-Asia-launch(source: SaaS Industry)
At a Glance

Razorpay, a six-year-old Bangalore-based fintech company, has raised $160 million in its Series E funding that valued the company at $3 billion, from a $1 billion valuation in the $100 million Series D funding in October last year.

Late last year, Razorpay surpassed a $1 billion valuation, making it the first Y Combinator-backed Indian company to achieve unicorn status. The Indian startup has more than tripled its valuation in less than six months and is gearing up to enter Southeast Asian markets.

This new round of funding has been co-led by existing investors Singapore’s sovereign wealth fund GIC (formerly Government of Singapore Investment Corporation) and Sequoia Capital India. Other existing investors such as Ribbit Capital, also participated in the new round, taking Razorpay’s latest raise to $366.5 million. 

With Stripe, the global giant in online payment platform, still absent in India, Razorpay has grown to dominate the market. And now, the startup aims to replicate its success in the markets of Southeast Asia, according to the statement of Harshil Mathur, co-founder, and chief executive of Razorpay.  

Mathur said, “We are one of the largest payments providers in the Indian ecosystem. We want to take the learnings 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.” 

He added that the new round provides the necessary valuation to confidently pursue M & M&A (Mergers and Acquisitions) opportunities to accelerate growth. 

Razorpay is an online payment platform that receives, processes, and disburses the money. The Indian startup’s offering is extensive: Razorpay has recently introduced a neo banking platform, RazorpayX, to issue corporate credit cards (more on that at the bottom of the article), as well as providing working capital to companies.

Razorpay X currently has about 15,000 customers, up from less than 5,000 in October of last year. Razorpay Capital currently distributes about $80 million to clients per year, up from less than $40 million a year earlier. The loan period with Razorpay is three to six months, and the ticket size is usually between 0.8 million and 1 million Indian rupees ($10,730 to $13,400).

Mathur and Shashank Kumar, co-founders of Razorpay, met at IIT Roorkee, India. They realized early on that small businesses faced immense difficulties in accepting money digitally. The existing payments processing firms were not designed to tackle the needs of small businesses and startups.

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