Bengaluru-based payments solutions company Razorpay announced on Monday that it has raised $160 million in a Series E funding round co-led by Singapore’s sovereign wealth fund GIC, and Sequoia India as it looks to expand into Southeast Asia.
Razorpay had attained a valuation of over $1 billion after raising $100 million in its Series D funding co-anchored by GIC and Sequoia India in October last year. The round had also seen participation from existing investors Ribbit Capital, Tiger Global, Y Combinator, and Matrix Partners.
The company has raised a total of $366.5 million since its launch in 2014.
It plans to use the fresh capital to scale up its business banking suite, make acquisitions, and launch services in Southeast Asia. The fintech unicorn is already hiring more than 600 employees to fuel its growth plans.
Founded in 2014 by IIT Roorkee graduates Shashank Kumar and Harshil Mathur, Razorpay helps small businesses and large enterprises modernise their financial infrastructure by providing intelligent automated payment and business banking solutions to manage their money flow end-to-end.
In 2021, Razorpay will also be on the lookout for B2B Financial SaaS startups operating in sectors such as SME credit, accounting and taxation, accounts receivable, and expense management. It acquired two companies in 2019 — Opfin, a payroll and HR Management software company, and Thirdwatch, an AI-driven company specialising in big data and machine learning for real-time fraud prevention.
According to a Bloomberg report, the company processes about $40 billion annualised payments volume currently, compared with $12 billion a year ago. The startup has seen 300% growth in both volume and revenue during the financial year ended March 2021, the report said quoting its co-founder and chief executive officer Harshil Mathur said.
Indian fintechs have been attracting investor interest lately with investment platform Groww and credit card bill payment platform CRED joining the unicorn club in April. Groww achieved a valuation of $1 billion after raising $83 million as part of its Series D funding, led by Tiger Global Management.
CRED, meanwhile, closed $215 million as part of its Series D funding round, at a post-money valuation of $2.2 billion.
Payments firm PhonePe, and One97 Communications Ltd, which owns the digital wallet Paytm, are also fintech unicorns.