Highlights:
- The Indian startup has tripled its valuation and is getting ready to launch within the Southeast Asian markets.
- Razorpay raises $160 million in its Sequence E financing with a valuation of $ 3 Billion.
- Razorpay accepts, processes, and disburses cash online for small companies and enterprises.
Introduction:
Razorpay is a financial technology headquartered in Bangalore, India that was founded by Harsil Mathur and Sashank Kumar in 2014. The company provides payment solutions that allow businesses to accept, process, and disburse payments. Razorpay participated in the W15 cohort of Y Combinator and was the second startup in India to be selected for Y Combinator.
Razorpay is the only convergence payments solution company in India that allows your business to accept, process, and disburse payments via its product suite. With Razorpay, you have access to all payment modes, including credit and debit cards, UPI, and popular mobile wallets.
The most crucial quality of a payments solution is the ability to scale itself to meet your growing demands. At Razorpay, we devote ourselves to make sure you have the best payments infrastructure in place.
Razorpay raises $160 million in its Sequence E financing with a valuation of $3 Billion.
Six-year-old Bangalore-based fintech Razorpay topped a $1 billion valuation late last year, becoming the first Y Combinator-backed Indian startup to reach the much sought-after unicorn status. In less than six months since the Indian startup has tripled its valuation and is preparing to launch in the Southeast Asian markets.
Razorpay said on Monday it has raised $160 million in its Series E financing round that valued the startup at $3 billion, up from “a little over” $1 billion valuations in the $100 million Series D in October last year.
The new round has been co-led by existing investors Singapore’s sovereign wealth fund — GIC — and Sequoia Capital India. Some other existing investors including Ribbit Capital also participated in the new round, which takes Razorpay’s to-date raise to $366.5 million.
Razorpay accepts, processes and disburses money online for small businesses and enterprises — essentially everything Stripe does in the U.S. and several other developed markets. But the Indian startup’s offering goes much further than that: In recent years, Razorpay has launched a new banking platform to issue corporate credit cards (more at the bottom of the article), and it also offers businesses working capital.
Razorpay offers a number of value-added services.
Razorpay offers a number of value-added services. These include vendor payments automation, real-time reconciliation, and analytics. It also manages subscriptions, GST invoices, designs and creates websites. The startup has also developed an app-based substitute for payment terminals (also known as POS). This comes along with pay-by-link for enabling offline commerce. Its offering is also a part of Amazon’s new Digital Suite that focuses on SMBs.
The startup’s marquee offering has grown 40-50% month-on-month in the past six months. It now plans to process over $50 billion in total payment volume by the end of 2021. The startup also plans to hire a number of people. It currently has over 600 open positions, several in Southeast Asian markets.
Offering an update, Mathur said Razorpay X now serves about 15,000 businesses. This has grown up from fewer than 5,000 in October last year. Razorpay Capital is now annually bandying out about $80 million to clients. This is up from less than $40 million a year ago. The duration of the loan Razorpay provides ranges from three to six months. Moreover, the ticket size is typically between 0.8 million to 1 million Indian rupees ($10,730 to $13,400).
