In a Series C round led by Sequoia India and Ribbit Capital, online payments firm Razorpay has notched $75 million in funding. Y Combinator’s Continuity Fund and Tiger Global Management, who are existing investors, also joined the round in the Bengaluru-based firm, DealStreetAsia reported.
With the funding, Razorpay is said to be valued at roughly $450 million. The company is said to use the funds to grow new offerings such as its Razorpay Capital lending arm and Razorpay X neo-banking platform. At the same time, the company also aims to grow its team to 700 while seeking some buyouts during the six months to come.
The company was started by Harshil Mathur and Shashank Kumar. It authenticates as well as takes payments via debit cards, credit cards, digital wallets and internet banking through a secure link connecting users and merchants. The firm was also a part of the Y Combinator accelerator program in 2015. And, in January 2018, the company notched $20 million in a Series B round led by Y Combinator and Tiger Global Management.
Mathur, who is also the company’s CEO, said per the report, “Under Razorpay Capital, the company has seen 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.”
The news comes as demand for digital payments from merchants in India has skyrocketed by 70 percent year on year following the rollout and demonstration of the Unified Payments Interface (UPI) per an April report that cited Razorpay. The firm’s “Era of Rising FinTech” report found it to be likely that transactions that are non-cash will overtake cash transactions by 2023.
Mathur noted per the report at the time, “We saw that the Small and Medium Enterprises (SMEs) in Tier 1 and 2 cities are driving a solid growth of 75 per cent in non-cash transactions.”