- Bengaluru-based payment gateway company Razorpay announced it raised $75 million in funding led by Ribbit Capital
Razorpay, a Bengaluru-based payment gateway company, announced recently that it raised $75 million (₹525 crore). This round of funding was led by Ribbit Capital. Sequoia Capital also co-led the funding round.
And Tiger Global Management and Y Combinator’s Continuity Fund participated in the Series C round as well. Some of Razorpay’s previous investors include Matrix Partners and Mastercard.
With the new funding round, Razorpay plans to double down on its business lines. Including this round, Razorpay has raised a total of about $107 million.
Razorpay CEO Harshil Mathur declined to disclose the valuation to ET. However, sources pegged it at about $450 million.
Founded by IIT alums Mathur and Shashank Kumar, Razorpay is planning to use the proceeds on strengthening the neo-banking platform Razorpay X and its lending arm Razorpay Capital. Mathur pointed out that with Razorpay Capital, the company saw an annual disbursal rate of $100 million.
“We expect our nonpayment gateway businesses to contribute an estimated 40% to our overall revenue over the next two years,” said Mathur via ET.
Mathur said that Razorpay is planning to ramp up its employee count and hunt for potential acquisitions.
“We hope to have a headcount of about 700 by the end of the current fiscal, particularly in senior management roles, as well as undertake some buyouts over the next six months,” added Mathur. As of right now, Razorpay’s headcount is 350.
Razorpay X is the company’s expanded product suite launched by the company that accepts payments. And it also manages cash flows and reconciles transactions with flexible payout terms. Currently, Razorpay X is in beta and there are about 1,500 merchants signed up. Razorpay X is expected to go live in the next 3 months.
Razorpay has 350,000 merchants on its platform total. And the company has a goal of hitting 450,000 by 2020.
“The digital payments market in India is massive. We are excited to be part of a company that is building trust between the consumers and the retailers to enable payments to flow faster and more efficiently in India,” added Ribbit Capital managing partner Meyer “Micky” Malka.
As of June, Razorpay offered digital payment support for 100 currencies — which enables Indian businesses to transact and accept payments from global companies. Some of Razorpay’s clients include Airtel, Indian Railways Catering and Tourism Corporation, Zomato, and Swiggy.
“Sequoia has been an active investor in the payments space globally and every decade a multi-billion dollar company gets created. The one thing common across these companies is their maniacal focus on great products that solve a clear customer problem,” explained Sequoia Capital principal Ishaan Mittal. “When we spoke to various merchants in India, they unanimously vouched for Razorpay’s product superiority and innovative offerings.”
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