India: Razorpay’s valuation trebles after $160m funding by GIC, Sequoia India, others

Razorpay Founders (L-R), Harshil Mathur & Shashank Kumar

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.

The funding round, which has trebled the company’s valuation to $3 billion in less than six months, also saw participation from Ribbit Capital and Matrix Partners.

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.

Razorpay plans to expand its footprint to the Philippines, Vietnam, Indonesia and Malaysia, and offer its core payment gateway service in these markets by the end-2021, financial daily Mint reported on Monday.
A portion of the funds raised will also be invested in its neo-banking platform RazorpayX to roll out new tailored products, according to the company statement. The platform has been disbursing credit upwards of Rs700 crore per month, helping entrepreneurs access working capital, and now plans to scale this up to Rs1,000 crore per month by the end of 2021.

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.