HomeStartup NewsRazorpay raises $160 million led by Sequoia Capital and GIC; Valuation triples to $3 billion

Razorpay raises $160 million led by Sequoia Capital and GIC; Valuation triples to $3 billion

Payments and business banking platform Razorpay has announced its Series E fundraise of $160 million, which has tripled the company's valuation to $3 billion in less than six months. The company had become a unicorn in October 2020.

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By Mugdha Variyar  April 19, 2021, 7:47:44 PM IST (Updated)

Razorpay raises $160 million led by Sequoia Capital and GIC; Valuation triples to $3 billion
Payments and business banking platform Razorpay has announced its Series E fundraise of $160 million, which has tripled the company's valuation to $3 billion in less than six months. The company had become a unicorn in October 2020.


This new round was co-led by Sequoia Capital and GIC, Singapore’s sovereign wealth fund, along with participation from Ribbit Capital and Matrix Partners. Razorpay plans to infuse the freshly raised capital to scale up its business banking suite, invest in new acquisitions and launch in International markets such as South-East Asian countries. The fintech Unicorn said it is hiring more than 600 employees to fuel its growth plans.

The new funding gives Razorpay a total of $366.5 million in investments since its inception in 2014, which includes its recent raise, a $100 million in Series D in 2020.

"We believe there’s a dire need to develop new banking technologies that meet the rising demand. And 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,” said Harshil Mathur, CEO and Co-founder of Razorpay.

The company’s neo-banking platform, RazorpayX saw 400 percent growth in transaction volume in the last 12 months of Covid. A portion of the funds raised will be invested in RazorpayX to roll out new tailored products, the company said in a release.

The company has been disbursing credit of upwards of Rs 700 crore per month, helping entrepreneurs get access to working capital, and now plans to scale this up to Rs 1,000 crore per month by the end of 2021.

Razorpay is also looking at global expansion. The company has been working on market research, understanding the payment needs of Southeast Asia businesses and plans to hire on-ground teams in building a payment acceptance layer and work with multiple stakeholders on product customisation.

In 2021, Razorpay also plans to double down investment in acquiring B2B SaaS companies.

In 2019, Razorpay acquired two companies - Opfin, a payroll and HR management software company, and Thirdwatch, an Artificial Intelligence (AI) driven company specialising in big data and machine learning for real-time fraud prevention.

“Being a technology-first company, we’re always evaluating products and technologies that automate long and arduous money movement, accounting and other banking processes, thereby allowing businesses to focus more on their growth. 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.

In the last six months, Razorpay said it has witnessed a 40-45 percent growth, month-on-month. Currently, the company has achieved $40 billion TPV (Total Payment Volume), and powers payments for over 5 million businesses including the likes of Facebook, Airtel, Ola, Zomato, Swiggy, Cred, ICICI Prudential among others. Razorpay is aiming to reach 200 million customers by 2021.
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