[Funding alert] Razorpay raises $375M in Series F at a valuation of $7.5B; sees IPO in next 2.5-3 years

Fintech startup Razorpay, which has raised $375 million in a Series F round led by Lone Pine Capital, Alkeon Capital and TCV, is planning to expand its B2B payments business to Malaysia, Vietnam, Indonesia, and the Philippines by next year, it told YourStory.

"A lot of these markets today are where India was 5-10 years ago - everything is suddenly getting digitised. We believe a lot of the products we've built today can be used in these markets," said Harshil Mathur, the startup's co-founder and CEO, in an interview with YourStory.

The startup said it will also use part of the capital it has raised to make strategic acquisitions in the next year, either on the product-capability side that can bolster its B2B payments business, or help it expand its reach in the new geographies it is planning to scale to.

"We're most keen on startups in the B2B SaaS and B2B financial SaaS space..they're most interesting to us currently," Harshil said.

Asked about the roadmap to IPO, he said that Razorpay was at least 2.5 to 3 years away from making a bid for the public exchanges, especially considering it was well-capitalised. Before Razorpay files for an IPO, Harshil says there's substantial work to be done on the business banking side, and his aim is to build an end-to-end business financial ecosystem in the next couple of years.

"We're powering 34 of the 42 unicorns already, and we want to grow in that space," Harshil said.

Razorpay's series F round saw participation from existing investors such as Tiger Global, Sequoia Capital India, Y Combinator and GIC.

The funds will be put towards helping Razorpay become a full-stack financial solutions company, scale up the business banking suite, RazorpayX, and offer new banking solutions in 2022.

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"While these freshly infused funds will be used in multiple areas, the most important one will be towards investing in building intelligent technologies that will make the lives of small businesses easier by providing them a fundamentally different experience and reducing complexity," Harshil Mathur, CEO and co-founder of Razorpay said in a press release.

By the end of 2022, the startup says it plans to achieve $90 billion in total payment volume (TPV), up from the $60 billion it has achieved as of December 2021.

Harshil said he's keen to build out Razorpay's capabilities in lower-tier India, especially after its multilingual checkout option, and its no-code payments platform that works via links, formed nearly 30 percent of the total payments volume.

"India’s B2B fintech sector is undergoing a period of rapid growth, and we are excited to partner with Razorpay, which has been at the forefront of creating resilient, innovative products to anticipate and address the changing needs of businesses," said David Craver, Co-Chief Investment Officer at Lone Pine Capital.

Razorpay, in recent times, has been focussing on expanding its business banking suite targeted at small businesses. It recently launched a tax payment service at its FTX 2021 event, along with other products to bolster the financial infrastructure of small companies.

It has also been pushing into neobanking to provide its user base a host of financial products.

The Bengaluru-based startup has raised $741.5 million in total investments so far since its inception in 2014.