On Monday, payment service provider Razorpay announced it has raised $160M driven by Sequoia Capital and GIC at valuation of $3B. Razorpay became a unicorn in October last year has tripled its valuation just within the 6 months.
Razorpay said that it prepares to infuse fresh funds capital to accelerate its business banking suite, invest in new acquisitions and go international in South East Asian countries.
“We believe there’s a dire need to develop new banking technologies that meet the rising demand. So we plan to use these funds to further expand our banking and lending product suite so that we not only provide a better experience to businesses and their customers but significantly contribute to the growth of our partner businesses,” explained Harshil Mathur, CEO and Co-founder of Razorpay.
The firm Razorpay is looking for more than 600 employees to accelerate its growth plans. The fresh round was co-driven by Sequoia Capital and GIC, Singapore’s sovereign wealth fund, along with participation from Ribbit Capital and Matrix Partners.
Razorpay, with its services, is helping SMBs and large-scale enterprises advance their financial system by giving them intelligent automated payment and business banking solutions to control their money flow end-to-end.
Razorpay’s neo-banking system, RazorpayX, is strengthening more than 15,000 businesses to control their money.
In the last 1 year, the neobank witnessed 400% growth in transaction volume, and over the previous six months, Razorpay has seen a 40%-45% growth month-on-month basis.
Razorpay said it has been disbursing credit of upwards of Rs 700 crore per month, serving businesspeople get way to working capital, and now prepares to scale this up to Rs 1,000 crore per month by the end of 2021.
“In the next 12 months, Razorpay will look to introduce more such products through strategic partnerships and acquisitions which fit into our vision of making financial infrastructure easy and available to businesses across the country,” said Shashank Kumar, Co-Founder & CTO, Razorpay.
“We expect digital payments to become a $500 billion market over the next 4-5 years. The Razorpay team, with their constant focus on execution excellence, has grabbed early leadership in this space,” added Ishaan Mittal, Principal, Sequoia India.