Bangalore-headquartered Razorpay has raised $375 million in a Series F funding round, more than doubling its valuation to $7.5 million from a previous valuation of $3 million as of April this year.
Razorpay, one of India’s largest fintech companies, is a leader in processing payments. The startup which operates as a neo banking platform accepts, process and disburses money for small businesses. It also offers these businesses and entrepreneurs credit cards and neo banking facilities. Apart from this, the startup also operates an international payments gateway that currently supports at least 90 currencies.
It new round was co-led by Lone Pine Capital, Alkeon Capital and TCV, and saw the participation of existing investors Sequoia Capital India, GIC, Tiger Global and Y Combinator. The latest funding round is Razorpay’s largest. In the past seven years, the startup has raised a total of $740 million; the latest funding round is a little more than half of the total funds that the startup has raised.
Razorpay passes as an all-rounder platform. It also helps businesses with collating tax and compliance disbursements, generating payment links that can be shared via email or through instant messaging services, subscription plans with automated recurring transactions on various payment modes, and automatic reconciliation of incoming transactions using virtual accounts and UPI IDs.
Razorpay has also started expanding into Southeast Asia recent and is expected to fuel these operations with the newly-acquired funds. Speaking on the startup, co-founder and chief executive of Razorpay Harshil Mathur said that “Our payments business continues to keep getting stronger. In the last one and a half years, we have also been able to prove our thesis on neo banking and lending. We want to ensure that when you start a company and sign up with Razorpay, we do everything for you on the financial side – from opening a bank account to building payments and disbursals and salary payouts. You don’t have to step out and use multiple tools”.
Razorpay claims to be processing $60 billion in transactions every year and the figure is up from $5 billion in 2019. The startup says it has more than 8 million businesses using its platform; these businesses include Meta, Cred, National Pension System, Indian Oil, etc.
Razorpay’s plan is to continue to focus on expanding its product offerings and to also hire over 600 people to fuel its growth in India and Southeast Asia.
Speaking on the investment, Deepak Ravichandran, General Partner at Alkeon Capital, said that “As the leading online payments player in the rapidly accelerating Indian digital payments market, Razorpay has continued to innovate and blaze new trails. With a broad set of products across payments, banking, and software that provide a seamless end-to-end experience for merchants (who have been historically underserved by legacy payment providers) and geographic expansion on the horizon, we are thrilled to be partnering with Harshil, Shashank and his team who have continued to execute on their vision. We could not be more excited for the journey ahead”.
The startup is also pushing to become ready for an initial public offering which should be announced soon.