Razorpay Raises $100 Million in Funding From GIC, Sequoia Capital India and Others
– Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners Join the Investor Army
– Aims to Scale up Razorpayx, Neobanking Platform – Targets 200% Growth by Fy’21
– the Company Will Power Payments and Banking for 50 Million Businesses by 2025
Witnessing a 300% growth in its business during the last six months, Razorpay announced its Series D fundraise of $100 Million, giving the company more than $1 Billion in valuation. This round was co-led by GIC, Singapore’s sovereign wealth fund and Sequoia India, along with participation from Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners.
Razorpay helps businesses modernise their financial infrastructure by providing intelligent automated payment and banking solutions to manage their entire money flow, while they focus more on their strategic functions. The new funding gives Razorpay $206.5 Million in investments since its inception in 2014, That includes its recent raise, a $75 Million in Series C in 2019.
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Razorpay plans to use the new funding to further strengthen and accelerate its two new product lines – RazorpayX, Neo-banking platform and Razorpay Capital, it’s Lending arm and invest in new initiatives to empower SMEs. By FY’21, the company expects RazorpayX and Razorpay Capital to contribute to 35% of its revenue, with a 100% increase in the company’s count of partner businesses. The funds raised will also be used towards hiring additional 500 employees by FY’21.
Humbled about the growth that the new Unicorn has had in the last five and a half years, Harshil Mathur, CEO and Co-Founder, said, “This news is exciting and humbling at the same time, we couldn’t be more proud of what the team has achieved. It’s a confirmation of always being focussed towards chasing the vision, not the competition. This funding represents a huge endorsement of our belief of powering the financial infrastructure for disruptive businesses, simplifying the entire money flow so that businesses can focus more on disrupting the Indian economy with their new ideas, products and experiences, everyday.”
Harshil added, “Over the last six months, RazorpayX, the neo-banking platform has witnessed 100% growth, primarily because we built the product zero-up solely from the eyes of the customers’ needs. Neobanking is a nascent but fast-developing space in the Indian market and has the potential to become the one-stop platform for a business’ banking needs. This pushes us to develop new technologies that meet the rising demand.”
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When asked about what the future holds for Razorpay, Harshil said, “We will power payments and banking for 50 Million Businesses by 2025. We will continue to make an impactful contribution to the growth of the industry, aid adoption in the under-served markets and drive new practices and a new thinking for the industry to follow. And this investment fits perfectly with our growth strategy. We are excited for GIC to join us on this journey, and for Sequoia Capital India’s continued faith in our mission to transform financial services in India.”
Despite the Covid-19 disruption, the Indian FinTech market is expected to grow to INR 6.20 lakh crores by 2025. The significant demand for digital payments has accelerated Razorpay’s growth during the pandemic.
Commenting on the funding, Choo Yong Cheen, Chief Investment Officer for Private Equity at GIC, said, “India has made significant strides in establishing a digital payments eco-system and Razorpay has established itself as a clear leader, with its strong focus on customer experience and product innovation. GIC has a long track record of partnering with leading FinTech companies globally and is delighted to partner with Razorpay in its journey to transform payments and banking. We look to support Razorpay’s continued growth and its strong management team in this fast-developing space.”
Ishaan Mittal, Principal, Sequoia Capital India LLP said, “India’s digital ecosystem is seeing unprecedented growth with online shoppers expected to cross 350 million by 2025. This trend of digitization is penetrating India across social strata and geography and Razorpay is playing a pivotal role in this transformation by enabling millions of merchants to accept digital payments in a frictionless and efficient manner. They have expanded the breadth of products and solutions rapidly across payments and banking and are becoming a platform for all financial technology needs of their customers. The Sequoia India team is excited to continue the strong partnership with Razorpay and team in this journey.”
The leading full-stack financial solutions company witnessed a 500% growth in 2019. This newly crowned FinTech Unicorn currently powers payments for over 5 Million businesses including the likes of Airtel, BookMyShow, Facebook, Ola, Zomato, Swiggy, Cred, ICICI Prudential among others and is all set to double this to 10 Million by the end of this year.
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