Razorpay’s market capitalization has more than quadrupled to $7.5 billion from $3 billion in April, as one of India’s top financial behemoths shows rapid growth and aggressively expands its product offerings. The Bangalore-based company, which is India’s industry leader in payments processing, said on Sunday evening that it has secured $375 million in its Series F funding round. Lone Pine Funding, Alkon Capital, and TCV co-led the latest round, which provides more capital to the business than all of its prior financings combined.
Razorpay, which has received over $740 million in the last seven years, claimed that existing investors Tiger Global, Sequoia Capital India, GIC, and Y Combinator also joined in the current round. Razorpay is a small company and enterprise payment processor that accepts, processes, and disburses funds to small businesses and organizations. It also has a new banking platform, which it uses to provide credit cards and working cash to businesses. It also has an international payment gateway that accepts more than 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. In recent years, the firm, whose services are comparable to those of Stripe, the global payments behemoth with little to no footprint in India has expanded into a few Southeast Asian countries.
Razorpay claims to have over 8 million clients, including Facebook, Swiggy, Cred, National Pension System, and Indian Oil and processes $60 billion in transactions yearly (up from $5 billion in 2019). Razor pay was used by 34 of the 42 Indian firms that have become unicorns this year. “Our payments division continues to grow in strength.”We’ve also been able to verify our thesis on new banking 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 create a business and sign up with Razorpay, we take care of everything from creating a bank account to setting up payments, disbursals, and salary distributions.” He went on to say, “You don’t have to go out and utilize numerous tools.” Razorpay expands in tandem with these enterprises, he claims. IIT Roorkee College is where Mathur and Shashank Kumar (co-founder of Razorpay) met. Small companies in India experienced several issues collecting money digitally at the time, and current payment processing corporations were not focused on their requirements.
Razorpay is now one of India’s most valued fintech businesses, with a valuation of $7.5 billion, up from a little over $1 billion last year. However, getting to this point has not been simple. In the early years of the company, the co-founders battled to persuade financiers to collaborate with them. The meetings were sluggish, 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 relentlessly to make Razorpay a people-first technology and product business.” “Since 2014, the Razorpay team has made it a point to never stop innovating,” Kumar stated. To drive its expansion in India and Southeast Asia, the business expects to continue to focus on growing its product offerings and recruit over 600 individuals.