Razorpay annouced it has raised $160 million in its Series E financing round that valued the startup at $3 billion, up from “a little over” $1 billion valuation in the $100 million Series D in October last year.
The new round has been co-led by existing investors Singapore’s sovereign wealth fund GIC and Sequoia Capital India. Some other existing investors including Ribbit Capital and Tiger Global also participated in the new round, which takes Razorpay’s to-date raise to $366.5 million.
Razorpay accepts, processes and disburses money online for small businesses and enterprises essentially everything Stripe does in the U.S. and several other developed markets. But the Indian startup’s offering goes much further than that: In recent years, Razorpay has launched a neobanking platform to issue corporate credit cards (more at the bottom of the article), and it also offers businesses working capital.
With the global giant Stripe still nowhere in the Indian picture, Razorpay has grown to become the market leader. And now, the startup plans to replicate its success from the home country in Southeast Asian markets, Harshil Mathur, co-founder and chief executive of Razorpay.
“We are one of the largest payments providers in the Indian ecosystem. We want to take the learnings we have in India to the Southeast Asian market. Before the end of the financial year, we want to launch in one or two Southeast Asian markets,” said Mathur, adding that the new round gives it the valuation to more confidently explore some M&A opportunities to accelerate growth.
More than 5 million businesses in India rely on Razorpay’s technology to process payments. Some of these clients include Facebook, telecom operator Airtel, ride-hailing firm Ola, food-delivery startup Swiggy, and fintech CRED.
Mathur and Shashank Kumar pictured above met at IIT Roorkee college. The duo realized early on that small businesses faced immense difficulties in accepting money digitally and the existing payments processing firms weren’t designed to tackle the needs of small businesses and startups.
Solving this issue became Razorypay’s goal, and in the early days about 11 individuals shared a single apartment as the co-founders