India’s fintech startup Razorpay has raised $375 million in the Series F round of funding at a $7.5-billion valuation, thus making it the country’s second-most valuable startup in this arena after Paytm. Razorpay CEO and co-founder Harshil Mathur said this funding was co-led by Lone Pine Capital, Alkeon Capital and TCV and also saw participation from existing partners like Tiger Global, Sequoia Capital India, GIC and Y Combinator.
He said the funding will help them strengthen India’s financial infrastructure for small businesses. Recalling the journey he and his partner Shashank Kumar (co-founder of Razorpay) started seven years ago, Mathur said: “We wanted to ensure that every company, irrespective of its size, should be able to have access to digital payments. Today, we are humbled to have the trust of 8 million partner businesses.”
Mathur said the company had launched a series of new products, including MAGIC Checkout, RazorpayX Tax Payment Suite, and Razorpay RIZE. “As we continue to build more and more intelligent technologies, we believe we will radically change how payments and banking are done in nearly every sector of India,” he said.
The funds raised will also be deployed to further scale RazorpayX, the neo-banking platform. The Bengaluru-based company also plans to revamp the banking experience for businesses. “We’re glad to see how RazorpayX is changing the business of banking rapidly and intelligently, powering over 25,000 Indian businesses to manage their money. With this round, we will also leverage our learnings of having built products for scale in India and foray into building payment solutions for South-east Asian countries. Further, we will look at new acquisitions in the B2B SaaS space, with the aim of providing the highest levels of experience to our customers,” said Mathur.
Kumar congratulated the “incredible team” at Razorpay for all the support and hard work. He also urged customers to join in as they “continue building the digital financial infra of the country.”
He further mentioned that neo-banking platform “RazorpayX is focused on building a smarter, personalised, software-driven banking hub that makes banking a joyful activity instead of something that entrepreneurs dread”. “Solving payment problems on the Internet is not enough. Our trusted badge and rewards programmes aim to put the trust and incentives back in the hands of small businesses and level the playing field with the large e-commerce platforms,” Kumar added.
He also mentioned that if India wants to become a $5 trillion economy by 2025, then more entrepreneurs need to come forward. Mathur said though digital has become the in-thing for the whole country, a “very large segment” of India is still to be digitised. He also believes that the next payment and banking experience for businesses will be “more frictionless, more cashless, more invisible, and more connected.”