Bangalore-based Razorpay Raises $160M in Series E Funding
Razorpay, a Bangalore-based digital payment and business banking unicorn, has raised $160 million in a Series E funding round led by Singapore’s sovereign wealth fund, GIC Capital, and Sequoia Capital . Ribbit Capital and Matrix Partners also participated in the funding round. This latest investment brings Razorpay’s valuation to $3 billion, tripling its value in just six months .
The company plans to use the newly raised capital to scale up its Business Banking suite, invest in new acquisitions, and expand into international markets such as Southeast Asian countries . Razorpay has been growing rapidly since its inception in 2014 and has become one of India’s leading payment gateway providers for small and medium-sized enterprises (SMEs) and startups .
Expanding Business Banking Suite
Razorpay’s Business Banking suite, Razorpay X, was launched less than two years ago and has already become a significant player in the Indian business banking market. The platform powers the banking requirements of more than 10,000 businesses and has seen a multi-fold increase in transaction volumes . With the new funding, Razorpay plans to expand its Business Banking suite further and offer more services to its customers.
Investing in New Acquisitions
Razorpay has been actively acquiring companies to expand its product offerings and strengthen its position in the market. In 2020, the company acquired Opfin, a payroll and HR management software provider, and TERA Finlabs, a risk assessment platform for lenders . With the new funding, Razorpay plans to continue investing in new acquisitions that can help it offer more services to its customers.
Expanding into International Markets
Razorpay has been eyeing international markets for some time now and plans to use the new funding to expand into Southeast Asian countries. The company has already established a presence in Nepal and plans to enter other markets soon . With its experience in the Indian market, Razorpay is well-positioned to offer payment gateway services to SMEs and startups in other emerging markets.
Razorpay’s latest funding round is a testament to the company’s rapid growth and success in the Indian digital payment and business banking market. With the new capital, Razorpay plans to expand its Business Banking suite, invest in new acquisitions, and expand into international markets. The company’s focus on customer commitment and innovation has helped it become one of India’s leading payment gateway providers for SMEs and startups.