Juspay bags $60M in a round by Kedaara Capital, valuation more than doubles

Bengaluru-based enterprise payment solutions provider Juspay has raised $60 million in a Series D funding round, comprising primary and secondary investments, just weeks after India's leading payment aggregators (PAs) snapped ties with the SoftBank-backed fintech.

YourStory exclusively reported in January that Juspay was in talks to raise a new round from Kedaara Capital at a unicorn valuation. While, the company did not disclose its valuation while announcing the round, two sources with direct knowledge of the matter told YourStory that with the latest funding, Juspay's valuation has more than doubled to over $900 million.

The largely secondary round was led by Kedaara Capital, with participation from existing backers SoftBank and Accel. With the fresh funding, the company plans to strengthen its AI capabilities to build solutions designed to fuel workforce productivity and enhance the merchant experience. 

The firm in a statement stated that it has expanded its operations across Asia-Pacific, Latin America, Europe, the UK, and North America.

“For the past decade, Juspay’s mission has been to create long-term value across the payments ecosystem—supporting merchants, banks, networks, and, by extension, the billions of users they serve,” said Sheetal Lalwani, Co-founder and COO of Juspay.

“Today, as we expand our global footprint and push the boundaries of AI, we remain committed to building truly open source and interoperable payment systems that embrace the growing diversity in the payments landscape. We welcome Kedaara Capital, we could significantly benefit from their rich experience as we build towards the next phase of our growth,” he added.

Last month, Juspay said it open-sourced its payment orchestrator platform, Hyperswitch, to allow merchants to self-host the solution within their infrastructure, enabling them to integrate with a diverse range of payment providers while defining their own transaction rules.

The move came just a couple of months after payment gateways and aggregators—including PhonePe, Razorpay, Paytm, and Cashfree—terminated partnerships with Juspay over concerns that the company prioritised its own payment gateway.

PA partners accused Juspay of misrepresenting transaction data and undercutting rivals, allegations Juspay denied as “baseless”. The CapTable reported the details earlier.

​A payment orchestrator is a service that enables businesses to manage and optimise their payment processing by connecting to multiple payment providers and processors through a single platform. It acts as an intermediary layer between the merchant and various payment gateways, offering flexibility, redundancy, and optimisation capabilities.

By intelligently routing transactions to the most appropriate payment providers based on factors, such as cost, success rates, currency, and geographical location, payment orchestrators streamline the payment process and enhance overall efficiency.

Founded in 2012 by Vimal Kumar and Ramanathan RV,  Juspay offers payment orchestration, checkout experiences, 3DS authentication, and other services to enterprise merchants, as well as end-to-end payments acceptance and real-time payments infrastructure for banks. 

The company reported a near 50% rise in its FY24 revenue while cutting losses by almost 8%.  Before the latest funding round, Juspay had raised close to $100 million in funding, with the most recent one in a SoftBank-led round in December 2021.