More Than 5 Million Customers
The latest Series E has been co-led by Razorpay’s existing backers, including Singapore’s sovereign wealth fund GIC and Sequoia Capital India. Other existing investors also took part in the new round, including Ribbit Capital.
Razorpay is a Bangalore-based fintech startup company that accepts, handles, and disburses money transactions for small businesses and enterprises, similar to Stripe in the United States (US). However, Razorpay has an even broader range of offerings. Furthermore, the startup has over 5 million companies that use Razorpay’s services to handle payments. Some of the companies they service include giants such as Facebook, telecom operator Airtel, ride-hailing company Ola, Swiggy, and fintech company CRED.
Razorpay has rolled out its neobanking platform to issue corporate credit cards and provide working capital services. Today, Razorpay is believed to be one of the biggest fintech startups in the Indian market. Additionally, the fintech startup also plans to expand into the Southeast Asian markets, according to Harshil Mathur, co-founder and CEO of Razorpay.
“We are one of the largest payments providers in the Indian ecosystem. We want to take the learnings we have in India to the Southeast Asian market. Before the end of the financial year, we want to launch in one or two Southeast Asian markets,” said Mathur.
He also said that the raised proceeds and new business valuation will allow his company to seek more merging of acquisition deals to spur growth. Mathur said that the startup’s processing payment operations — its core business — was growing rapidly and that the company would focus on launching two new products.
Around 15,000 businesses use Razorpay X, compared to 5,000 in October 2020. Moreover, Razorpay Capital is annually passing around $80 million to consumers, double from the figure a year ago.
The fintech startup company, which entered the unicorn territory in late 2020, plans to focus on business expansion in the following three years and then will consider going public.
“If it was just the payments processing business, we could go public right now. But our ambitions are beyond — to become the full ecosystem for businesses. And on those new sides (neobanking and lending), we are early,” Mathur added.
Razorpay’s payment processing operations have grown around 40-50% month-over-month in the past six months. Razorpay’s goal is to handle more than $50 billion in total payment volume by the end of this year. The fintech startup also said it wants to hire new staff.
Among its wide range of services, Razorpay offers vendor payment automation, real-time reconciliation and analytics, subscriptions management, GST invoicing, website creation, and more.
Fintech startup company Razorpay has secured $160 million in a new Series E round, hitting $3 billion in valuation. The company said it plans to continue growing its business and expand into the Southeast Asian market.
About the Author
Luigi Wewege is the Senior Vice President and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an instructor at the FinTech School which provides online training courses on the latest technology and innovation developments within the financial services industry. Luigi is also the published author of "The Digital Banking Revolution."