BENGALURU: Fintech unicorn Razorpay has raised $375 million in Series F round. With this funding round, Razorpay's valuation increased to $7.5 billion.
The fintech firm Razorpay was valued at $1 billion in October 2020 and $3 billion in April 2021. With the Series F round, the fintech major has raised a total of $740 million in investments since its inception in 2014.
The round was co-led by Lone Pine Capital, Alkeon Capital and TCV, it also received participation from existing investors like Tiger Global, Sequoia Capital India, GIC and Y Combinator.
These funds raised will be invested towards Razorpay’s mission of making finance frictionless by building a full-stack financial solutions company, solving for all payment and banking needs of businesses on one platform, the company said.
The company plans to use the 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 & operations and more on growth. The full-stack financial solutions company also plans to invest in new acquisitions in 2022 and expand its presence across the globe, starting with the Southeast Asian countries. It also plans to hire over 600 employees to fuel these growth plans in India and overseas.
Harshil Mathur, CEO and Co-Founder of Razorpay said, "We believe we will radically change how payments and banking is done in nearly every sector of India. While these freshly infused funds will be used in multiple areas, the most important one will be towards investing in building intelligent technologies that will make the lives of small businesses easier by providing them a fundamentally different experience and reducing complexity."
The company’s neo-banking platform, RazorpayX is powering over 25,000 Indian businesses to manage their money. Apart from 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 and learnings to mature markets like SEA countries.
Apart from this, Razorpay also plans to use the fundraise to double down investment in acquiring B2B SaaS companies that can help scale up operations while providing the highest standards of customer experience in the country.
Razorpay has achieved $60 billion TPV (Total Payment Volume) as of early December 2021. The company plans to achieve $90 billion TPV by the end of 2022.
The company clocked over 300% YoY growth, second year in a row. Razorpay currently powers payments for over 8 million businesses including the likes of Facebook, Ola, Zomato, Swiggy, Cred, Muthoot Finance, National Pension System, Indian Oil, among others, and is all set to reach 10 million businesses by 2022.