Fintech startup Razorpay turns unicorn amidst pandemic after $100M Series D funding led by Sequoia, GIC
Bengaluru-based fintech startuphas entered the unicorn club amidst the coronavirus pandemic. The payments startup announced that it had raised $100 million in Series D funding, in a round co-led by GIC, Singapore’s sovereign wealth fund, and Sequoia Capital India.
Existing investors Y Combinator, Matrix Partners India, Tiger Global, and Ribbit Capital also participated in the round. With this funding, Razorpay hopes to further grow its product lines - the neobanking platform Razorpay, and its lending arm - Razorpay Capital, an initiative to empower SMEs. It is also looking to hire additional 500 employees by FY’21.
A press statement shared by the company said, the new funding gives Razorpay $206.5 million in investments since its inception in 2014, which includes its recent fundraise of $75 million in Series C in 2019.
Razorpay Founders (L-R), Harshil Mathur and Shashank Kumar
Speaking to YourStory, Harshil Mathur, Co-founder and CEO, Razorpay, said,
"We at Razorpay have always been a payments company, and our focus has always been financial solutions. With this funding we want to go further in our reach. We aim to build deeper tech products and solutions, as we always have done."
"We are now focussed on expanding and building our neo-banking platform and the lending arm, both of which are growing significantly. Neobanking is witnessing a 100 percent growth. We believe both will contribute towards a significant part of our revenue in FY21," he added.
The team expects RazorpayX and Razorpay Capital to contribute close to 35 percent of the company's revenue. It also is expecting a 100 percent increase in its count of partner business. The team added that the Indian fintech market will touch Rs 6.20 lakh crore by 2025. It also added that COVID-19 has accelerated the company's digital payments segment.
Commenting on the funding, Choo Yong Cheen, Chief Investment Officer for Private Equity at GIC, said in a press statement share by the company,
“India has made significant strides in establishing a digital payments eco-system and Razorpay has established itself as a clear leader, with its strong focus on customer experience and product innovation. GIC has a long track record of partnering with leading fintech companies globally, and is delighted to partner with Razorpay in its journey to transform payments and banking. We look to support Razorpay’s continued growth and its strong management team in this fast-developing space.”
Harshil added the team will be looking closely at acquiring and also investing in startups in the Fintech B2B SaaS space.
"Last year, in November, we had acquired Opfin and Third Watch. Both had built strong products and had a consumer base. As we look to expand and grow our products, we will closely look at acquiring and investing in startups in the B2B fintech SaaS space in payments, lending, and neobanking," said Harshil.
The press statement said the full-stack financial solutions company witnessed a 500 percent growth in 2019. It added that Razorpay powers payments for over five million businesses, including the likes of Airtel,, Facebook, , , , , and ICICI Prudential among others, and is all set to double this to 10 million by the end of this year.
Ishaan Mittal, Principal, Sequoia Capital India, said in a press statement shared by the company: “India’s digital ecosystem is seeing unprecedented growth with online shoppers expected to cross 350 million by 2025. This trend of digitisation is penetrating India across social strata and geography, and Razorpay is playing a pivotal role in this transformation by enabling millions of merchants to accept digital payments in a frictionless and efficient manner."
Ishaan added, "They have expanded the breadth of products and solutions rapidly across payments and banking, and are becoming a platform for all financial technology needs of their customers. The Sequoia India team is excited to continue the strong partnership with Razorpay and team in this journey.”
In the press statement, Harshil added, “We will power payments and banking for 50 million businesses by 2025. We will continue to make an impactful contribution to the growth of the industry, aid adoption in the underserved markets, and drive new practices and a new thinking for the industry to follow. And this investment fits perfectly with our growth strategy. We are excited for GIC to join us on this journey, and for Sequoia Capital India’s continued faith in our mission to transform financial services in India.”