Razorpay, an Indian fintech company, has received $375 million in funding

Razorpay’s market capitalization has more than doubled to $7.5 billion from $3 billion in April, as one of India’s largest fintech behemoths shows rapid growth and aggressively expands its product offerings.

The Bangalore-based company, which is India’s market leader in payments processing, announced on Sunday evening that it had raised $375 million in its Series F funding round. Lone Pine Capital, Alkeon Capital, and TCV co-led the new round, which brings more capital to the startup than all of its previous financings combined.

Razorpay, which processes for – and disburses money to – small businesses and enterprises, said that existing investors Tiger Global, Sequoia Capital India, GIC, and Y Combinator also participated in the new round. It also has a neobanking platform and an international payment gateway that accepts over 90 different currencies.

Helping businesses collect tax and compliance disbursements, generating payment links that can be shared via email or instant messaging services, subscription plans with automated recurring transactions on various payment modes, and automatic reconciliation of incoming transactions using virtual accounts and UPI IDs are just a few of its other services.

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In recent years, the startup, whose services are similar to those of Stripe, the global payments behemoth with little to no presence in India, has expanded into a few Southeast Asian countries.
Razorpay claims to have over 8 million customers, including Facebook, Swiggy, Cred, National Pension System, and Indian Oil, and processes $60 billion in transactions annually (up from $5 billion in 2019). Razorpay is used by 34 of the 42 Indian startups that have become unicorns this year.
“Our payments division continues to grow in strength. “We’ve also been able to prove our thesis on neobanking and lending in the last one and a half years,” said Harshil Mathur, co-founder and CEO of Razorpay, in an interview with TechCrunch this week.

“We want to make sure that when you start a business and sign up with Razorpay, we take care of everything from opening a bank account to setting up payments, disbursals, and salary payouts.” He went on to say, “You don’t have to go out and use multiple tools.” Razorpay expands in tandem with these businesses, he claims.
IIT Roorkee college is where Mathur and Shashank Kumar (co-founder of Razorpay) met. Small businesses in India faced numerous challenges accepting money digitally at the time, and existing payment processing firms were not focused on their needs.


Razorpay is now one of India’s most valuable fintech startups, with a valuation of $7.5 billion, up from just over $1 billion last year. However, getting to this point has not been easy.
In the early years of the company, the co-founders struggled to persuade bankers to work with them. The conversations were slow, and the co-founders felt helpless as they repeatedly explained the same problems to investors, they said in an earlier interview.

“For the past seven years, we’ve worked tirelessly to make Razorpay a people-first technology and product company.” “Since 2014, the Razorpay team has made it a point to never stop reinventing,” Kumar said.
To fuel its growth in India and Southeast Asia, the startup plans to continue to focus on expanding its product offerings and hire over 600 people.

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However, according to Mathur, Razorpay is not looking to offer a consumer-focused neobanking service. The company recently introduced a feature that saves shoppers’ information — passwords, card details, and addresses — during their first purchase and prefills them when they transact with the same business or any other that uses Razorpay to process its payments.

“We may do some consumer-oriented work, but we want to avoid pure consumer offerings for two reasons. We don’t see any significant value add that we can bring to that ecosystem that other players aren’t already providing, and we also don’t see anything significant that we can gain by getting into that business,” he said.
Razorpay is also preparing for an IPO, he said, but he added that the company won’t be going public for at least two and a half years.

In a statement, Deepak Ravichandran, General Partner at Alkeon Capital, said, “As the leading online payments player in the rapidly accelerating Indian digital payments market, Razorpay has continued to innovate and blaze new trails.”
“We are thrilled to be partnering with Harshil, Shashank, and his team, who have continued to execute on their vision, with a broad set of products across payments, banking, and software that provide a seamless end-to-end experience for merchants (who have been historically underserved by legacy payment providers) and geographic expansion on the horizon.” We are ecstatic to embark on this adventure.

Read Also: Indian Ride-Hailing Startup Ola Valued At $7.3 Billion After A New Funding

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