Razorpay said a large portion of the funds will be used to develop new technologies and scale up its recently expanded product suite, Razorpay X and Razorpay Capital.
Payments solution company Razorpay on Tuesday announced its Series C funding of $75 million, led by Sequoia India and Ribbit Capital, along with participation from Tiger Global and Y Combinator. It has raised a total of $31.5 million in Series A (2016) and Series B (2018) rounds, along with 33 angel investors and a strategic investment by MasterCard.
Razorpay said a large portion of the funds will be used to develop new technologies and scale up its recently expanded product suite, Razorpay X and Razorpay Capital. The company expects its neo-banking platform (Razorpay X) and lending arm (Razorpay Capital), along with the non-payment gateway suite to contribute to 40% of its revenue by next year.
Razorpay X is a product suite which is used for accepting payments, managing cash flows and reconciling transactions and providing flexible payouts. The product, which is still in beta stage and has about 1,500 merchants using it, is expected to go live in a month.
The expanded product suite was to move the company into a converged payment solutions company, handling all aspect of money movements.
Razorpay also plans to use these funds to double its headcount to 700 by 2020 and hire senior members to lead different product verticals. While the company didn’t reveal its valuation post this funding, people with knowledge of the matter said the valuation was close to $450 million.
Harshil Mathur, CEO and Co-Founder, Razorpay, said, “Today, over 350,000 disruptors are partnered with us to create the difference that we are here to make. This funding has come in at a time when fintech and banking is evolving beyond payments and lending and we would like to change the way businesses access banking products”.
Razorpay claims that it grew by 500% in the last one year. They company provides digital payments for businesses like IRCTC, Airtel, BookMyShow, Zomato, Swiggy, Yatra and Zerodha, among others and plans to increase this to 450,000 by 2020.
Micky Malka, managing partner, Ribbit Capital, said, “The digital payments market in India is massive. We are excited to be part of a company that is building trust between the consumers and the retailers to enable payments to flow faster and more efficiently in India. We expect that with Razorpay’s technology and support, the Indian consumer and the business owners will benefit from a more comprehensive and thorough experience”.