Indian neo banking platform Razorpay has raised $375 million (Rs 2,850 crore) funding in its Series F round. The fintech giant's valuation sprinted sevenfold after the latest round of funding as the firm's valuation rose to $7.5 billion. The firm had two major rounds of funding this year including the $375 million funding and the $160 million funding raised earlier this year. Razorpay also received a major boost as the Covid pandemic outbreak had induced the usage of digital payment methods nationwide.
Key Points:
1. The digital payments and financial services provider raised $375 million in its Series F funding round led by hedge and US-based investors TCV, Alkeon Capital, and Lone Pine Capital.
2. Razorpay's valuation raised from over $1 billion to $7.5 billion in a little over a year since it turned unicorn and it was largely impacted by the two major funding rounds this year. The Bengaluru-based fintech company had also raised $160 million in funding earlier in April this year. Razorpay has raised $741.5 million so far.
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3. This has also made Razorpay one of the most valued privately-held fintech startups in India. The existing investors also participated in the funding round and it included Tiger Global, Sequoia Capital India, GIC, and Y Combinator.
4. “We have become the de-facto choice for business (payments solutions). We went from five million to eight million merchants as many internet businesses are scaling very fast and they are getting funded to grow further,” Harshil Mathur, CEO, and co-founder of Razorpay told ET.
5. “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,” he added.
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