Enterprise funds and monetary providers startup Razorpay has raised $160 million as a part of its Sequence E spherical co-led by current traders, Singapore’s sovereign wealth fund GIC and Sequoia India, at a valuation of $3 billion. Final October, the agency had secured $100 million in a spherical led by GIC and Sequoia India at a valuation of a little bit over $1 billion.
Current traders Ribbit Capital and Matrix Companions additionally participated within the present funding spherical. Thus far, the corporate has raised $366.5 million since its launch in 2014. The valuation makes Razorpay the third-most invaluable fintech agency within the Indian startup ecosystem.
Bengaluru-based PhonePe was valued at $5.5 billion throughout a funding spherical in December 2020, whereas One97 Communications Ltd, which owns Paytm, is valued at $16 billion.
With this recent infusion, Razorpay will broaden its footprint in South-east Asia, together with the Philippines, Vietnam, Indonesia and Malaysia, to supply its core fee gateway service in these markets by 2021-end.
Moreover, Razorpay can be taking a look at buying software-as-a-service (SaaS) platforms and add capabilities equivalent to treasury administration, compliance-related remittances, enterprise reconciliations and real-time reporting to broaden its suite of merchandise for small and medium enterprises (SMEs).
The corporate will use the recent capital to spice up its neo-banking enterprise Razorpay X and its lending platform Razorpay Capital, which contribute almost 30% of its income.
Each providers have been launched almost two-and-a-half years in the past.
“Within the final 12 months alone, we have now on-boarded near 700,000 retailers on our platform, and seen robust progress throughout our Razorpay X and Capital verticals. However there’s extra work to be completed; we imagine there’s a dire must develop new banking applied sciences that meet the rising demand. So, we plan to make use of the funds to additional broaden our banking and lending merchandise,” mentioned Harshil Mathur, chief govt officer and co-founder, Razorpay.
In response to Mathur, Razorpay Capital has ramped up month-to-month credit score disbursement from ₹300 crore to ₹800 crore by companions inside a 12 months. Over 15,000 retailers subscribe to Razorpay’s neo-banking options now, in comparison with 5,000 within the year-ago interval.
The funds enterprise, Razorpay, presently processes funds value $35 billion yearly, and plans to scale as much as $50 billion by the tip of 2021. It has shut to five million small companies as clients.