Payments gateway platform Razorpay has raised $375 million in a funding round, which it will use to invest in the neobank platform, make more acquisitions and enter more markets, The Economic Times of India reported.
The company’s value is now $7.5 billion. The round was led by TCV, Lone Pine Capital and Alkeon Capital, according to the report.
Co-Founder and CEO Harshil Mathur said in the report the business is now “the de-facto choice” for payment solutions.
“We went from 5 million to 8 million merchants as many internet businesses are scaling very fast and they are getting funded to grow further,” he said, per the report. “Neobanking banking is really scaling for us, and all our offerings are now starting to come together (at a scale). We now have 25,000 users who use our banking suite service. This is a new industry we have created working with internet-first brands, early-stage startups.”
Razorpay has said its goal is to get $90 billion in total payments volume (TPV) on the platform next year, according to the report. This year, the company managed 20% higher TPV at $60 billion, as opposed to the planned $50 billion.
Razorpay also raised $160 million in April, which gave it a valuation of $3 billion, the report stated. The company’s valuation has gone up sevenfold just over a year after it became a unicorn.
Razorpay benefited from pandemic-era conditions as people went digital to shop and perform most financial functions, according to the report. Most of its merchants were able to see strong growth.
In July, the company acquired artificial intelligence (AI)-based risk tech Software-as-a-Service (SaaS) platform TERA Finlabs, a Bengaluru startup giving risk, tech and capital solutions to help business financing.
The buy marks Razorpay’s third such acquisition to move more deeply into the world of B2B financing following the release of Razorpay Capital in 2019.