Bangalore-headquartered Razorpay, one of the handful of Indian fintech startups that has demonstrated intensified expansion in recent years, has joined the coveted unicorn club after causing $100 million in a brand-new financing round, the payments processing startup said on Monday.
The new financing round, a Series D, was co-led by Singapore’s sovereign wealth fund GIC and Sequoia India, the six-year-old Indian startup said. The brand-new round valued the startup at “a little more than$ 1 billion, ” co-founder and chief executive Harshil Mathur told TechCrunch in an interview.
Existing investors Ribbit Capital, Tiger Global, Y Combinator, and Matrix Spouse too participated in the round, which returns Razorpay’s total to-date raise to $206.5 million.
Razorpay consents, treats, and disburses coin online for small businesses and enterprises. In recent years, the startup has expanded its provides to provide credits to enterprises and also launched a neo-banking platform to issue corporate credit cards, among other products.
Mathur and Shashank Kumar( depicted above ), who see each other at IIT Roorkee, started Razorpay in 2014. They began to explore opportunities around payments processing business after realizing just how difficult it was for small businesses such as young startups to accept money online less than a decade ago. There were very few payment processing houses in India then and startups needed to produce a long-list of documents.
The early unit of about 11 parties at Razorpay shared a single accommodation as the co-founders raced to meet with over 100 bankers to convince banks to work with them. The exchanges were gradual and remains under a stalemate for so long that the co-founders felt helpless explaining the same challenge to investors several eras, they recalled in an interview last year.
To say things have changed for Razorpay would be an understatement. It’s become the largest payments provider for business in India, said Mathur. Razorpay, which participates with Prosus Ventures’ PayU, consents a wide-range of fee options including credit cards, debit card, portable wallets, and UPI.
“Razorpay has established itself as a clear leader, with its strong focus on customer experience and concoction innovation, ” said Choo Yong Cheen, Chief Investment Officer for Private Equity at GIC, in the following statement. “GIC has a long track record of partnering with heading fintech business globally and is delighted to partner with Razorpay in its excursion to alter payments and banking.”
Some of Razorpay’s consumers include fund lodging decacorn Oyo, e-commerce monstrous Tokopedia, top nutrient transmission startups Zomato and Swiggy, online learning programme Byju’s, ride-hailing beings Gojek, supply series platform Zilingo, caller ID service Truecaller, travel ticketing conglomerates Yatra and Goibibo, and telecom monstrous Airtel.
The startup expects to process about $25 billion in deals — up five times from last year — for nearly 10 million of its purchasers this year, said Mathur.
He attributed some of the raise to the coronavirus pandemic, which he said has accelerated the digital adoption among countless businesses.
On the neo-banking and asset surface, Mathur said, Razorpay expects RazorpayX and Razorpay Capital to account for about 35% of the startup’s revenue by the end of March next year.
Mathur said the startup’s payment processing service continues to be its fastest growing business and does not need much capital to grow, so the startup will be deploying the fresh funds to expand its neo-banking provides to include vendor payment, and expenditure and tariff management and other features.
The startup, which aims to work with over 50 million professions by 2025, may also acquire a few firms as it explores openings around inorganic stretch in the neo-banking category, said Mathur.
“We will continue to make an impactful contribution to the growth of the industry, abetted following in the under-served markets and drive brand-new the procedures and a brand-new reasoning for the industry to follow. And this investment fits perfectly with our expansion policy, ” he said.
While the coronavirus pandemic has slowed down deal-makings in India, about half a dozen startups in the country including online tilt platform Unacademy, and Pine Labs secure access to the unicorn status.
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