India’s Razorpay has become a unicorn with its latest financing round, in which it raised $100 million from a group of investors led by Singapore’s sovereign wealth fund GIC and Sequoia India. Razorpay’s Series D financing round valued the Indian fintech startup at a little over $1 billion, co-founder and CEO Harshil Mathur told TechCrunch.
Details on Razorpay's funding round with GIC, Sequoia
In addition to GIC and Sequoia India, Tiger Global, Matrix Partners, Y Combinator and Ribbit Capital also invested in Razorpay's financing round. All of these firms were already investing in the fintech startup previously. With the Series D financing round, the company has now raised about $206.5 million.
Razorpay is a fintech startup that processes and disburses money online for enterprises and small businesses. The company has also expanded its services over the years and now offers loans to businesses. It also issues corporate credit cards through its neo-banking platform.
Mathur and fellow co-founder Shashank Kumar launched Razorpay in 2014. They wanted to help small businesses like startups by enabling them to accept money online. They got the idea for the company after noticing how difficult it was for small businesses to do that.
How things have changed for the company
In the early years of Razorpay, the company's team had a difficult time talking banks into working with them. The co-founders became frustrated because they had to explain the same difficulty to investors multiple times. However, things have changed for the company in recent years.
Razorpay is now the biggest payments provider for businesses in India, according to Mathur. The company competes with PayU from Prosus Ventures and accepts a broad range of payment options from credit cards and debit cards to mobile wallets and unified payments interface (UPI).
Choo Yong Cheen of GIC said in a statement that Razorpay has set itself up as a clear leader in the fintech industry "with its strong focus on customer experience and product innovation." He said Singapore's sovereign wealth fund "has a long track record of partnering with leading fintech companies."
Razorpay expects to process approximately $25 billion worth of transactions for almost 10 million customers. That would be a fivefold increase in transaction volumes since last year.