Razorpay is in talks with existing investor Singapore’s sovereign investment fund GIC for a $150-200 million fundraise.
The capital infusion could almost double the payments solution startup’s valuation to $2 billion, less than six months after it reached the $1 billion milestones, sources told The Economic Times.
Moneycontrol could not independently verify the report.
One source said that while GIC is expected to be the primary investor, “existing investors Sequoia Capital and Tiger Global will likely participate” adding: “there could be other new investors also looking to come in.”
The almost doubling of valuation would be largely in thanks to increased adoption of online payment options and higher digital transaction volumes. If the funding goes through, this would be the fastest an Indian startup has increased valuation, the report said.
Another source said that since investor sentiment towards fintech companies is “favourable” they can “command strong valuations” on the back of India’s significant shift towards digital payments.
Razorpay and GIC did not respond to queries, as per the report.
A source further told the paper the capital could be used to expand the platform in anticipation of further growth in 2021 and to strengthen technology for fraud analytics and security features.