One of India's largest fintech giants, Razorpay, has more than doubled its valuation to $7.5 billion from $3 billion in April as it demonstrates fast growth and aggressively broadens its product offerings.
The Bangalore-headquartered startup, which is a market leader in payments processing in India, said Sunday evening it has raised $375 million in its Series F financing round. Lone Pine Capital, Alkeon Capital and TCV co-led a new round of financing for the startup.
Razorpay has raised over $740 million over the past seven years, and new investors include Tiger Global, Sequoia Capital India, GIC and Y Combinator.
Razorpay disburses money to small businesses and enterprises. It offers credit cards and working capital to businesses through a neobanking platform. It has an international payments gateway that supports over 90 currencies.
Automatic reconciliation of incoming transactions using virtual accounts and UPI IDs, 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 helping businesses with tax and compliance disbursements are some of the other offerings.
The startup that is similar to the one that has little to no presence in India has entered a few nations in Southeast Asia in recent years.
Razorpay processes $60 billion in transactions annually, up from $5 billion in 2019. 34 of the 42 startups that have become unicorns in India use Razorpay.
Our payments business is getting stronger. In an interview with TechCrunch this week, the co-founder and chief executive of Razorpay said that they have been able to prove their thesis on neobanking and lending in the last one and a half years.
We want to make sure that when you sign up with Razorpay, we do everything for you on the financial side, from opening a bank account to building payments. He said that you don't have to use multiple tools. He said that Razorpay grows with the businesses.
The co-founder of Razorpay met with Mathur at the college. Small businesses in India faced a lot of challenges in accepting money digitally and existing payment processing firms weren't focused on catering to their needs.
Razorpay is now one of India's most valuable fintech startups with a $7.5 billion valuation, up from a little over $1 billion last year. It has been difficult to get to this stage.
The co-founders had a hard time persuading bankers to work with them. The conversations were slow and the co-founders felt powerless explaining the same challenges to investors multiple times.
Over the last seven years, we have worked hard to make Razorpay a technology and product company that is people-first. Kumar said that the Razorpay team has committed to never stop reinventing.
The startup plans to hire over 600 people to fuel its growth in India and Southeast Asia.
Razorpay, which recently introduced a feature that saves shoppers' information during their first purchase and prefills those when they transact with the same business or any other that also uses Razorpay to process its payments, is not looking to offer a consumer.
We want to stay away from pure consumer offerings for two reasons. We don't see any huge value add that we can bring that other players in the same space aren't already offering, and also we don't see anything significant that we can gain by entering that business
He said that Razorpay will not be exploring the public markets for at least two and a half years.
The General Partner at Alkeon Capital said that 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, we are thrilled to be partnering with Harshil, Shashank and his team. We are excited for the journey ahead.
