Indian FinTech Startup Razorpay, a digital payments facilitator for businesses, is notching $160 million in a Series E funding round that values the firm at $3 billion, three times its October 2020 valuation of about $1 billion. The funding round is being co-led by GIC and Sequoia, with participation from Ribbit Capital and Matrix Partners.
Harshil Mathur, co-founder and CEO, said in a blog post on Monday (April 19) that the company he co-founded with Shashank Kumar in 2014 has a mission of “making online payments accessible to all companies,” regardless of how large or how small. “We have always believed in a singular focus on building for the customer, and we believe that despite all the changes in the industry and the ecosystem, it is the one factor that still drives us,” he said.
Funds raised will be allocated to the firm's business banking platform, RazorpayX, to create a suite of customized product offerings on a new tech stack “to further enhance convenience and security,” per the post.
Since its introduction in 2019, RazorpayX has accelerated to power the banking requirements of over 10,000 businesses. Further, its transaction volume has increased “multifold” in the past 12 months.
“We believe there’s a dire need to develop new banking technologies that meet the rising demand. So we plan to use these funds to further expand our banking and lending product suite so that we not only provide a better experience to businesses and their customers, but significantly contribute to the growth of our partner businesses,” Mathur said, according to The Statesman.
“We expect digital payments to become a $500 billion market over the next four to five years. The Razorpay team, with their constant focus on executional excellence, has grabbed early leadership in this space,” said Ishaan Mittal, principal, Sequoia India, per the same report.
Razorpay teamed up with Mastercard in February to accelerate digital payments for small and mid-size businesses (SMBs). The partnership will help startups and SMBs advance digitization while also maintaining business continuity.