FinTech: Indian Payments Fintech Razorpay To Raise $200-250M

September 3, 2021 | FinTech, News, Venture Capital

Razorpay, already a unicorn, is looking for a valuation of $4 billion.

Razorpay, the Indian payments fintech founded in 2014 by Shashank Kumar and Harshil Mathur, is looking to raise $200-250 million from global investors at a valuation of around $4 billion, two people familiar with the development told Mint.

The fintech is said to be in talks with hedge funds and venture capital firms including Tiger Global Management, Coatue Management, D1 Capital Partners, DST Global, Dragoneer Investment Group and Falcon Edge Capital.

The fintech space in India has been abuzz with the news of the acquisition of Indian payment gateway service provider BillDesk by Consumer internet group Prosus’s payment arm PayU for $4.7 billion, announced earlier this week.

Razorpay fundraising

In April, the payments startup raised $160 million in a Series E round co-led by GIC, Sequoia Capital, along with Matrix Partners and Ribbit Capital at a valuation of $3 billion.

Last year, in October, it entered the unicorn club when it scored $100 million in a Series D funding round led by GIC and Sequoia with participation from previous investors Ribbit Capital, Tiger Global, Y-Combinator, and Matrix Partners.

According to Mint, Razorpay has cumulatively raised $366.5 million in investments to date.

Solid growth

Speaking on an interview this week with Gadgets 360, Shashank Kumar said Razorpay was initially rocked back on its heels by the pandemic, with revenues dipping 30% in the first three months. But there was a sea-change after that.

“We started observing a huge interest from businesses across the country, small and large enterprises, to digitise their finances,” Kumar said. “The pandemic catalysed the adoption of digital technologies and gave rise to a lot of native-digital businesses.”

Within a year, Razorpay was processing $40 billion in total payments volume, and revenues grew 40 – 45% month-on-month throughout 2020.

Shashank Kumar’s plans for new money: Invest heavily in new payment and banking solutions that can simplify finance operations for startups and SMEs.

Related Story: Razorpay Is India’s Latest Unicorn

Image credit: Razorpay

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