After raising $375 million (Rs 2,850 crore) in a recent round of funding, digital payments and financial services provider Razorpay is now valued at $7.5 billion. This was a Series F fundraise, co-led by hedge and private equity firms Lone Pine Capital, Alkeon Capital and TCV.
With this new valuation, Razorpay has witnessed a seven-fold rise in its valuation since about a year ago, when it turned unicorn in October 2020. This funding also makes Razorpay the most valued privately-held fintech company in India, and the second most valued Indian fintech after One97 Communications Ltd owned Paytm.
As per the company, existing investors, including Tiger Global, Sequoia Capital India, GIC and Y Combinator also participated in the recent round of funding.
The current fundraise implies that this unicorn startup?Razorpay has now mopped up a total of $741.5 million in equity investments since its inception in the year 2014.
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In its co-founder and CEO Harshil Mathur¡¯s words, Razorpay will use the funds to create and scale full-stack financial services offerings for businesses. It will also look at inorganic growth opportunities and will acquire companies in the business-to-business (B2B) software segment which are catering to micro, small and medium enterprises (MSMEs).
Also, the startup aims to double down on the direct foreign remittances space, and actively look to add new insurance offerings for businesses, apart from health insurance.
Back in 2018, Razorpay had first forayed into financial services through the launch of neo-banking and lending solutions, Razorpay X and Razorpay Capital.
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The company has also invested in B2B logistics provider, Shiprocket and small business advisory platform MSMEx to date.
And recently, in a bid to bolster its financial services play, Razorpay had launched a new suite of products including ¡®RazorpayX Tax Payment Suite¡¯ to mark its entry into the business tax payments space.
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Razorpay is also eyeing international expansion in 2022 and looks to be present in Southeast Asia by the first half of next year.
This fintech first entered India¡¯s unicorn club back in October 2020, after the company raised $100 million led by GIC and Sequoia India, and was valued at a little over $1 billion. Then, it quickly tripled its valuation to $3 billion in just 6 months, after raising $160 million in April, this year. It then raised an undisclosed amount from Salesforce Ventures, in September this year.
The company recently claimed that it is processing a total payment value worth $60 billion and powering payments for 8 million businesses on an annualized basis through its platform. And it expects this number to touch the $90 billion mark by the end of 2022.
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