Razorpay on October 12 said it has raised approximately Rs 731 crore ($100 million) in a new funding round co-led by Sequoia Capital India and GIC (Singapore’s Sovereign Wealth Fund) and including Matrix Partners, Ribbit Capital, Tiger Global and Y Combinator.
This round values Razorpay at over $1 billion, making it the sixth Indian company to hit unicorn status this year – despite an overall subdued environment due to the COVID-19 pandemic.
In fact significant demand for digital payments has accelerated Razorpay’s growth during the pandemic, the company said.
Razorpay has seen 300 percent growth in business over the last six months, the company said. It added that funds raised will be used for new product lines – RazorpayX (neo-banking platform) and Razorpay Capital (lending); to invest in small and medium enterprises (SMEs); and to hire 500 additional employees by FY21, the statement added.
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Razorpay services businesses’ financial infrastructure through automated payment and banking solutions to manage money flow. Since 2014, the company has raised $206.5 million investment, of which $75 million was raised in a series C funding in 2019.
CEO and Co-Founder Harshil Mathur said the company’s neo-banking platform RazorpayX saw 100 percent growth over the last six months as it met customer needs. “Neo-banking 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,” Mathur said.
He said the company is looking at servicing 50 million businesses by 2025, adding that despite COVID-19 disruptions, the Indian fintech market is expected to grow to Rs 6.20 lakh crore by 2025.
This is also evidenced in the fact that the space saw three of the six unicorns this year in Pine Labs, Razorpay and Zerodha; followed by one each in edu-tech with Unacademy, software with Postman and beauty care with Nykaa.
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(With inputs from PTI)
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