- Indian startup Razorpay Raises $100M in funding
- Funding comes from Various New and Existing Backers
- The company has registered 2.14 times Growth last Fiscal Year
Razorpay, the business-focused payment gateway has raised $100 million in a Series D funding. The round was led by GIC and Sequoia Capital, at a valuation of over $1 billion. Other existing investors including Ribbit Capital, Tiger Global Management, Y Combinator, and Matrix Partners India also participated in the round.
“The funding comes with a major milestone of Razorpay becoming the newest unicorn in India. GIC is also a great partner at this stage of the company because they are a significant public market investor,” said Shashank Kumar, co-founder of Razorpay on the company’s blog.
Post funding, Razorpay has become the fourth unicorn in the payments space in India after Paytm, Billdesk, and Pine Labs. The company had raised $75 million led by Ribbit Capital last year with a valuation of nearly $450 million.
Razorpay offers payments and other financial infrastructure to help businesses manage money flow. The bulk of the Indian company’s revenue comes from business payment gateways. Razorpay has Facebook, Google, Jio, Zerodha, OkCredit, and Hotstar as its major clients.
Razorpay recently launched a collateral-free credit line ‘Cash Advance’ via third-party lenders. It offers loans in the range of $681 to $13,636 without any paperwork. Razorpay also aims at paying a total credit worth Rs 100 crore by the end of this year.
In the neo-banking segment, the company competes with Open, which had last secured a $30 million worth Series B round led by Tiger Global and Tanglin Venture Partners in June 2019.
Razorpay is yet to file its annual statements for the financial year ending 2020. However, the company has significantly improved its financials in FY19. It registered 2.14x growth in operating revenue amounting to Rs 193 crore with losses of Rs 3 crore.
Harshil, Co-Founder said that the team will be looking closely at acquiring startups. They will also invest in startups in the Fintech B2B SaaS space.