Bengaluru-based fintech startup Razorpay has entered the unicorn club amidst the coronavirus pandemic. The payments startup announced that it had raised $100 million in Series D funding, in a round co-led by GIC, Singapore’s sovereign wealth fund, and Sequoia Capital India.
Existing investors Y Combinator, Matrix Partners India, Tiger Global, and Ribbit Capital also participated in the round. With this funding, Razorpay hopes to further grow its product lines – the neobanking platform Razorpay, and its lending arm – Razorpay Capital, an initiative to empower SMEs. It is also looking to hire additional 500 employees by FY’21.
A press statement shared by the company said, the new funding gives Razorpay $206.5 million in investments since its inception in 2014, which includes its recent fundraise of $75 million in Series C in 2019.
The team expects RazorpayX and Razorpay Capital to contribute close to 35 percent of the company’s revenue. It also is expecting a 100 percent increase in its count of partner business. The team added that the Indian fintech market will touch Rs 6.20 lakh crore by 2025. It also added that COVID-19 has accelerated the company’s digital payments segment.
Harshil added the team will be looking closely at acquiring and also investing in startups in the Fintech B2B SaaS space.
The press statement said the full-stack financial solutions company witnessed a 500 percent growth in 2019. It added that Razorpay powers payments for over five million businesses, including the likes of Airtel, BookMyShow, Facebook, Ola, Zomato, Swiggy, Cred, and ICICI Prudential among others, and is all set to double this to 10 million by the end of this year.
In the press statement, Harshil added, “We will power payments and banking for 50 million businesses by 2025. We will continue to make an impactful contribution to the growth of the industry, aid adoption in the underserved markets, and drive new practices and a new thinking for the industry to follow. And this investment fits perfectly with our growth strategy. We are excited for GIC to join us on this journey, and for Sequoia Capital India’s continued faith in our mission to transform financial services in India.”
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