In recent years, Bangalore-headquartered Razorpay, one of the very few Indian fintech startups that has demonstrated accelerated growth. The payments processing startup declared on Monday, they joined the coveted unicorn club after raising $100 million in a new financing round.
The six-year-old Indian startup said, Singapore’s sovereign wealth fund GIC and Sequoia India led the new financing round, which was a Series D funding round. Co-founder and chief executive Harshil Mathur said in an interview, the new round valued the startup at a little more than $1 billion
With existing investors Tiger Global, Ribbit Capital, Matrix Partners and Y Combinator also participating in the round, the total funds raised by Razorpay’s to-date reached $206.5 million.
The startup in recent years has broadened its offerings to provide loans to businesses and also launched a neo-banking platform to issue corporate credit cards, along with other products and services
Razorpay was started in 2014 by Mathur and Shashank Kumar, who met each other at IIT Roorkee. Both IITians started analyzing alternatives around the payments processing industry after realizing just how difficult it was for small businesses such as young startups to accept money online a few years back. At that time only a handful of payment processing firms were present in India and startups needed to produce a long-list of documents.
The company was started with an early team of about 11 people, who used to share a single apartment, and the co-founders used to rush to meet with over 100 bankers to convince banks to work with their startup. The founders recalled their data of grind in an interview last year, they said how the conversations were slow initially and remained in a deadlock for so long that the co-founders found themselves in a helpless situation, explaining the same challenge to investors.
It would be an understatement to say things have changed for Razorpay. Mathur said Razorpay over the years managed to become the largest payment provider for business in India. Razorpay, which accepts a wide range of payment options including credit cards, debit cards, mobile wallets, and UPI, competes directly with Proses Ventures’ PayU.
Razorpay, with its strong focus on customer experience and product innovation, has established itself as a clear leader said Choo Yong Cheen, Chief Investment Officer for Private Equity at GIC, in a statement. GIC has a long track record of partnering with leading fintech companies globally and is delighted to partner with Razorpay in its journey to transform payments and banking.
Fintech firm Cred, budget lodging decacorn Oyo, online learning platform Byju’s, social giant Facebook, e-commerce Flipkart top food delivery startups Zomato and Swiggy, supply chain platform Zilingo, telecom giant Airtel and travel ticketing firms Yatra and Goibibo, are Some of Razorpay’s clients in India
The startup expects to method regarding $25 billion in transactions — up 5 times from last year — for nearly ten million of its customers this year, aforementioned Mathur.
He attributed a number of the expansion to the coronavirus pandemic, which he aforementioned has accelerated the digital adoption among several businesses.
On the neo-banking and capital aspect, Mathur aforementioned, Razorpay expects RazorpayX and Razorpay Capital to account for regarding thirty-fifth of the startup’s revenue by the top of March next year.
Mathur aforementioned the startup’s payment process service continues to be its quickest growing business and doesn’t would like abundant capital to grow, therefore the startup are going to be deploying
the contemporary funds to expand its neo-banking offerings to incorporate merchant payment, and expense and tax management and alternative options.
The startup, that aims to figure with over fifty million businesses by 2025, may additionally acquire a number of companies because it explores opportunities around inorganic enlargement within the neo-banking
“We can still build associate degree impactful contribution to the expansion of the business, aid adoption within the under-served markets and drive new practices and a replacement thinking for the
And this investment fits utterly with our growth strategy,” he said.
While the coronavirus pandemic has delayed deal-making in the Asian nations, regarding [*fr1] a dozen startups within the country together with on-line learning platform Unacademy, and Pine Labs have secured the status of a unicorn.