Most startups never reach a valuation of over $1 billion, and are such a statistical rarity that they are termed as unicorns, as coined in 2013 by venture capitalist Aileen Lee.
Indian startup Razorpay is proud to join the unicorns' club
with raising $100mn. The full-stack financial solutions company Razorpay has
raised $100 million in its Series D round of funding.
Now, the company is rubbing shoulders with companies BYJU’s, Swiggy, Zomato, Paytm and others.
The round was co-led by GIC, Singapore's sovereign wealth fund and Sequoia India, along with participation from Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners, the company said in a statement.
Witnessing a 300 per cent growth in its business during the
last six months, the new funding gives Razorpay $206.5 million in investments
since its inception in 2014 (this includes recent $75 Million raise in Series C
in 2019).
"This funding represents a huge endorsement of our belief of powering the financial infrastructure for disruptive businesses, simplifying the entire money flow so that businesses can focus more on disrupting the Indian economy with their new ideas, products and experiences, every day," said Harshil Mathur, CEO and Co-Founder.
The company intends to use the latest round of funding to strengthen and boost its two new product lines – RazorpayX and Razorpay Capital. The former is a neo-banking platform i.e. it will only have online service and no physical end-user offices. The latter is a lending arm and will invest in new initiatives to empower SMEs (Small and Medium Enterprises).
"Neobanking is a nascent but fast-developing space in the Indian market and 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.
Despite the Covid-19 disruption, the fintech market is expected to grow to Rs 6.2 lakh crore by 2025.
"We will power payments and banking for 50 million businesses by 2025," Mathur added.
33 angel investors have invested in the company, thus
backing their belief in the company’s vision to redefine how finance works in
India and simplify payments and banking.