Razorpay raises $375 million led by Lone Pine Capital; valuation rises to $7.5 billion

The Series F fundraise also received participation from existing investors like Tiger Global, Sequoia Capital India, GIC and Y Combinator.With this funding round, the fintech major’s valuation increased to $7.5 billion.

Including the current round, Razorpay has raised a total of $740 million in investments since its inception in 2014.

Fintech start-up Razorpay on Monday announced its Series-F fundraise worth $375 million co-led by US-based hedge fund Lone Pine Capital, Alkeon Capital and TCV. The Series F fundraise also received participation from existing investors like Tiger Global, Sequoia Capital India, GIC and Y Combinator.With this funding round, the fintech major’s valuation increased to $7.5 billion.

This makes it one of the fastest increases in valuation for an Indian unicorn in a year. Razorpay was valued at $1 billion in October 2020 and $3 billion in April 2021. Including the current round, Razorpay has raised a total of $740 million in investments since its inception in 2014.

The fintech major currently provides payment solutions to over 8 million businesses which mostly includes SMEs and start-ups including the likes of Facebook, Ola, Zomato, Swiggy, Cred, Muthoot Finance, National Pension System, Indian Oil, among others. Razorpay has achieved $60 billion TPV (Total Payment Volume) as of early December 2021 and plans to achieve $90 billion TPV by the end of 2022.Founded by alumni of IIT Roorkee, Shashank Kumar and Harshil Mathur, Razorpay is the second Indian company to be a part of Silicon Valley’s largest tech accelerator, Y Combinator.

The company plans to use the fresh funds to further scale up its business banking suite, RazorpayX and offer new banking solutions in 2022 that will help businesses focus less on handling compliance and operations and more on growth. The company also plans to invest in new acquisitions in 2022 and expand its presence across the globe, starting with the Southeast Asian countries.Commenting on the recent fundraise Harshil Mathur, CEO and co-founder of Razorpay said that the start-up would utilise the capital towards investing in building intelligent technologies targetted mostly at small and medium businesses.

“We want small businesses to spend less time managing compliance and operations and invest more time in creating new products, building on new ideas and thinking scale. It’s great to know that our investors across the globe have continued to put their trust in this mission.

This investment will help us take financial services up a notch and serve the underserved businesses and continue to build the central nervous system of Digital India,” added Mathur.Today, the company’s neo-banking platform, RazorpayX has over 25,000 Indian businesses onboard. Apart from the product expansion of RazorpayX, the company is also looking at global expansion.

Geographies like Southeast Asian (SEA) countries face similar payment problems like India and Razorpay will look to leverage its leadership in building intelligent payment products in SEA countries. Apart from this, Razorpay also plans to use the fundraising to double down investment in acquiring B2B SaaS companies that can help scale up operations.

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