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October 12, 2020

Razorpay joins unicorn club with fresh $100m funding

Indian online payments firm Razorpay has received $100m investment in its Series D financing round, increasing its valuation to more than $1bn.

About the funding round

The latest round was led by Singapore’s sovereign wealth fund GIC as well as current backer Sequoia India.

GIC and Sequoia were joined by existing investors Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners.

Set up by IIT Roorkee alums Harshil Mathur and Shashank Kumar in 2014, Razorpay has raised $206.5m to date.

How the funds will be used

It intends to use the fresh infusion to enhance its neo-banking platform RazorpayX and its lending unit Razorpay Capital.

Using the new capital, the firm also plans to hire 500 people across growth, product and technology.

Razorpay CEO and cofounder Harshil Mathur said: “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.”

Razorpay moves

Last year, Razorpay raised $75m in its Series C funding round.

Its client list includes Airtel, BookMyShow, Facebook India and Sony.

The firm is the fifth fintech firm in India to secure gain access to the unicorn club. The others achieving this status are BillDesk, Flipkart-owned PhonePe and PolicyBazaar.

Razorpay is currently focusing on acquisitions and is in talks with some companies.

“It is too early to speak on which startups we are looking to acquire since these are still in the discussion phase. But we continue to look at inorganic avenues of growth through opportunistic acquisitions,” noted Mathur.

In August this year, Sokin entered into an agreement with Razorypay to tap the country’s money transfer market.

UK-based fintech payments firm Sokin will leverage RazorpayX to offer business banking services to its clients.

 

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