Razorpay, an Indian financial technology startup, has reportedly raised USD 160 million during its Series E funding round, tripling the six-year-old fintech firm’s valuation to USD 3 billion within six months as it prepares to expand its services in Southeast Asia.
The latest round was led by existing investors including Singapore’s sovereign wealth fund (GIC) and Sequoia Capital India. Previously, the company had managed to secure USD 100 million in a Series D funding round during October last year.
For those unaware, Razorpay acts as a payment service provider for small businesses and enterprises, following a model similar to what Stripe does in the United States and other developed markets.
However, Razorpay has differentiated itself by introducing neobanking services that issue corporate credit cards as well as offering working capital to businesses, confirmed sources.
Co-founder and Chief Executive at Razorpay, Harshil Mathur, reportedly stated that global payments giant Stripe is currently not present in India, allowing the fintech firm to emerge as a market leader. He added that the company is planning to replicate its success in India to other Southeast Asian markets.
Mathur added that by the end of the financial year, the company aims to launch its services in one or two Southeast Asian markets.
It is worth noting that over 5 million Indian businesses depend on Razorpay’s technology to process transactions. Some of its major clients include telecom operator Airtel, social-media giant Facebook, food-delivery startup Swiggy, ride-hailing firm Ola, and fintech firm CRED.
Razorpay Capital is also shelling out nearly USD 80 million to clients, up from a shy of USD 40 million a year ago, cited knowledgeable sources. The company now plans to process over USD 50 billion in total payment volume by the end of this year and hire over 600 talents in various Southeast Asian markets.
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https://techcrunch.com/2021/04/18/razorpay-160-million-raise-valuation-hits-3-billion/