Exclusive: SoftBank-backed Juspay eyes 2025's first unicorn crown with fresh fundraise

Fintech firm Juspay is in talks to raise new funding that could make it 2025's first unicorn, as the Softbank-backed startup seeks to raise capital at a valuation exceeding $1 billion, three people with direct knowledge of the matter told YourStory.

The company, previously valued at around $400 million (about Rs 3,500 crore), has initiated conversations with private equity firms Warburg Pincus, Kedaara Capital, and venture capital firm Norwest Venture Partners, said the sources who did not wish to be identified as the discussions are private.

While the contours of the deal are yet to be finalised, the company could raise around $100 million in the new round, the sources added. Juspay has appointed investment bank Avendus Capital as its advisor for the transaction.

Avendus Capital declined to comment on the development. Meanwhile, queries sent to Juspay, Kedaara Capital, Warburg Pincus, and Norwest Venture Partners remained unanswered. The copy will be updated with their comments as they arrive.

“Juspay has been in the market for a few months now and is testing whether it can get a $1 billion valuation. It has grown significantly since it last raised funds... it deals in the payment infrastructure segment and so the burn is not a lot,” said one of the persons cited above.

“All this makes it a good candidate for a valuation markup but whether it manages to get a unicorn valuation remains to be seen,” the person added.

The second person said the company needs funds to expand overseas and develop new products.

Juspay is poised to achieve a significant valuation boost if the deal is finalised, standing out in the Indian startup ecosystem currently undergoing a valuation correction with companies struggling to retain their COVID-19 valuations.

Founded over a decade ago by Vimal Kumar and Ramanathan RV in Bengaluru, Juspay specialises in developing payment orchestration solutions that act as a technology layer over traditional payment gateways.

The Accel-backed startup reported a near 50% rise in its FY24 revenue while cutting losses by almost 8%, YourStory reported in November. The company has raised close to $100 million in funding to date and last raised funds in December 2021 in a SoftBank-led round.

Leveraging its strengths in payments and open-source protocols, Juspay also developed Namma Yatri, a mobility app focusing on ride-hailing services. Namma Yatri is built on the Beckn Protocol and aligns with the Open Network for Digital Commerce to provide low-cost ride-hailing options and open access to digital mobility services. Recently, Juspay decided to spin off Namma Yatri as an independent entity to attract other investors and scale further.

In February last year, the company acquired LotusPay in an all-cash deal to strengthen its offerings to the BFSI segment and merchants.