Razorpay’s market capitalization has more than quadrupled to $7.5 billion from $3 billion in April, as one of India’s top fintech behemoths shows rapid growth and aggressively expands its product offerings.
The Bangalore-based company, which is India’s industry leader in payments processing, announced on Sunday evening that it has raised $375 million in its Series F funding round.
Lone Pine Funding, Alkeon Capital, and TCV co-led the latest round, which provides more capital to the business than all of its previous financings combined.
Razorpay, which has received over $740 million in the last seven years, claimed that existing investors Tiger Global, Sequoia Capital India, GIC, and Y Combinator also joined in the current round.
Razorpay is a small company and enterprise payment processor that accepts, processes, and disburses funds to small businesses and enterprises. It also has a neobanking platform, which it uses to provide credit cards and working cash to businesses. It also has an international payment gateway that accepts more than 90 different currencies.
Helping businesses collect tax and compliance disbursements, generating payment links that can be shared via email or instant messaging services, subscription plans with automated recurring transactions on various payment modes, and automatic reconciliation of incoming transactions using virtual accounts and UPI IDs are just a few of its other services.
In recent years, the startup, whose services are similar to those of Stripe, the global payments behemoth with little to no footprint in India, has expanded into a few Southeast Asian countries.
Razorpay claims to have over 8 million customers, including Facebook, Swiggy, Cred, National Pension System, and Indian Oil, and processes $60 billion in transactions annually (up from $5 billion in 2019). Razorpay is used by 34 of the 42 Indian firms that have become unicorns this year.
Harshil Mathur, co-founder and chief executive of Razorpay said, “Our payments business continues to keep getting stronger. In the last one and a half years, we have also been able to prove our thesis on neobanking and lending.”
“We want to ensure that when you start a company, and sign up with Razorpay, we do everything for you on the financial side – from opening a bank account to building payments and disbursals and salary payouts. You don’t have to step out and use multiple tools,” he added. As these businesses grow, Razorpay grows with them, he said.
To read our blog on Razorpay has launched a speedier checkout function and has reached a TPV of $60 billion, click here.
