Razorpay Raises $375 Million At $7.5-Billion Valuation
Payment gateway Razorpay is now valued at $7.5 billion, putting it second in the pecking order of most valued fintech firms after Paytm.
The company raised $375 million in its Series-F funding round, it said in a release. This is its largest fundraise and more than all of its previous rounds put together.
The Bangalore-based company's valuation has seen a sevenfold increase in just 15 months. It turned a unicorn in October 2020 and was valued at $3 billion in April this year.
The latest round was co-led by Lone Pine Capital, Alkeon Capital, and TCV. It also saw participation from existing investors like Tiger Global, Sequoia Capital India GIC, and Y Combinator.
"We've come a long way in these seven years, and more so since 2020," said Harshil Mathur, chief executive of Razorpay Software Pvt. "Moving forward, we will radically change how payments and banking are done in nearly every sector of India."
Started in 2013 by Shashank Kumar and Mathur, Razorpay‘s core business is that of a payment gateway, although it has since diversified into a number of other payment-related vertices. Its customers include Zomato, Swiggy, Ola and Cred, among others.
Razorpay aims to be a full-stack financial solutions company and will scale up its business banking suite, RazorpayX, which helps companies with compliance management and operations, it said in its release.
It shall invest in acquisitions in 2022 and expand its presence across Southeast Asian markets. It also intends to hire more employees to fuel its growth plans.
Currently, Razorpay competes with PayU, BillDesk, Paytm and others in India. It had clocked a total payment value of $60 billion as of early December and has set a target to hit $90 billion in total payments processed by the end of 2022.