Bengaluru-based fintech startup Razorpay has entered the unicorn membership amidst the coronavirus pandemic. The funds startup introduced that it had raised $100 million in Sequence D funding, in a spherical co-led by GIC, Singapore’s sovereign wealth fund, and Sequoia Capital India.
Current traders Y Combinator, Matrix Companions India, Tiger International, and Ribbit Capital additionally participated within the spherical. With this funding, Razorpay hopes to additional develop its product traces – the neobanking platform Razorpay, and its lending arm – Razorpay Capital, an initiative to empower SMEs. It is usually seeking to rent further 500 workers by FY’21.
A press assertion shared by the corporate mentioned, the brand new funding offers Razorpay $206.5 million in investments since its inception in 2014, which incorporates its latest fundraise of $75 million in Sequence C in 2019.
Razorpay Founders (L-R), Harshil Mathur and Shashank Kumar
Chatting with YourStory, Harshil Mathur, Co-founder and CEO, Razorpay, mentioned,
“We at Razorpay have all the time been a funds firm, and our focus has all the time been monetary options. With this funding we wish to go additional in our attain. We goal to construct deeper tech merchandise and options, as we all the time have executed.”
“We are actually focussed on increasing and constructing our neo-banking platform and the lending arm, each of that are rising considerably. Neobanking is witnessing a 100 % progress. We imagine each will contribute in direction of a major a part of our income in FY21,” he added.
The crew expects RazorpayX and Razorpay Capital to contribute near 35 % of the corporate’s income. It is also anticipating a 100 % enhance in its rely of accomplice enterprise. The crew added that the Indian fintech market will contact Rs 6.20 lakh crore by 2025. It additionally added that COVID-19 has accelerated the corporate’s digital funds section.
Commenting on the funding, Choo Yong Cheen, Chief Funding Officer for Personal Fairness at GIC, mentioned in a press assertion share by the corporate,
“India has made significant strides in establishing a digital payments eco-system and Razorpay has established itself as a clear leader, with its strong focus on customer experience and product innovation. 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. We look to support Razorpay’s continued growth and its strong management team in this fast-developing space.”
Harshil added the crew will likely be wanting intently at buying and in addition investing in startups within the Fintech B2B SaaS house.
“Final yr, in November, we had acquired Opfin and Third Watch. Each had constructed sturdy merchandise and had a client base. As we glance to increase and develop our merchandise, we are going to intently take a look at buying and investing in startups within the B2B fintech SaaS house in funds, lending, and neobanking,” mentioned Harshil.
The press assertion mentioned the full-stack monetary options firm witnessed a 500 % progress in 2019. It added that Razorpay powers funds for over 5 million companies, together with the likes of Airtel, BookMyShow, Fb, Ola, Zomato, Swiggy, Cred, and ICICI Prudential amongst others, and is all set to double this to 10 million by the top of this yr.
Ishaan Mittal, Principal, Sequoia Capital India, mentioned in a press assertion shared by the corporate: “India’s digital ecosystem is seeing unprecedented progress with web shoppers anticipated to cross 350 million by 2025. This development of digitisation is penetrating India throughout social strata and geography, and Razorpay is taking part in a pivotal position on this transformation by enabling tens of millions of retailers to simply accept digital funds in a frictionless and environment friendly method.”
Ishaan added, “They’ve expanded the breadth of merchandise and options quickly throughout funds and banking, and have gotten a platform for all monetary expertise wants of their prospects. The Sequoia India crew is happy to proceed the sturdy partnership with Razorpay and crew on this journey.”
Within the press assertion, Harshil added, “We will power payments and banking for 50 million businesses by 2025. We will continue to make an impactful contribution to the growth of the industry, aid adoption in the underserved markets, and drive new practices and a new thinking for the industry to follow. And this investment fits perfectly with our growth strategy. We are excited for GIC to join us on this journey, and for Sequoia Capital India’s continued faith in our mission to transform financial services in India.”
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