Fintech unicorn Razorpay's value jumps to $7.5 bn; up 7.5x in 15 months

Razorpay, India's second-most valuable fintech start-up after Paytm, has raised US$ 375 million in a Series F round of fundraising, valuing the company at US$ 7.5 billion. The company's value has increased sevenfold in the last 15 months, pushing out Walmart-owned digital payments provider PhonePe to third place on the country's most valuable fintech list.

Lone Pine Capital, Alkeon Capital, and TCV facilitated Razorpay's most recent round of funding. Existing investors such as Tiger Global, Sequoia Capital India, GIC, and Y Combinator also contributed. The funds will be used to help Razorpay achieve its objective of becoming a full-stack financial solutions company that can meet all of a company's payment and banking needs on a single platform.

In 2022, it expects to use the new funds to expand its business banking suite RazorpayX and introduce new banking solutions. In 2022, the company expects to invest in new acquisitions and grow its global presence, beginning with Southeast Asian countries. To support these expansion objectives, Razorpay is looking to hire around 600 people.

In October 2020, Razorpay was valued at US$ 1 billion, and in April 2021, it was valued at US$ 3 billion. Since its establishment in 2014, Razorpay has raised a total of US$ 741.5 million in funding, including the Series-F round.

When Paytm secured US$ 1 billion in a capital round in 2019, it was valued at US$ 16 billion after going public in November.

When PhonePe raised US$ 700 million in primary capital from existing Flipkart investors, including Tiger Global, in December 2020, it was valued at US$ 5.5 billion.

"We've come a long way in seven years, and even more since 2020," said Harshil Mathur, Razorpay's CEO and co-founder. "We believe we will drastically revolutionise how payments and banking are done in practically every industry of India moving forward."

Meta (previously Facebook), Ola, Zomato, Swiggy, Cred, Muthoot Finance, National Pension System, and Indian Oil are among the companies that use the service, which is expected to grow to 10 million business users by the end of 2022. Razorpay is a payment solution provider for 34 of the 42 unicorn firms that were named in 2021.

"We want to create new products and build experiences that will impact the lives of millions of businesses and customers," said Shashank Kumar, Razorpay's CTO and co-founder.

Magic Checkout, RazorpayX Tax Payment Suite, and Razorpay Rize were among the new products introduced by Razorpay at its flagship event, FTX'21. Early in December 2021, the company reached a TPV (total payment volume) of US$ 60 billion. By the end of 2022, it hopes to have a TPV of US$ 90 billion.

TCV managing partner John Doran remarked, "We are happy to support Harshil (Mathur), Shashank (Kumar), and the entire Razorpay team." "We believe they are developing India's next-generation payments and banking platform."

For the second year in a row, the company grew by more than 300% year over year.

Razorpay has been in the vanguard of creating resilient, creative products to anticipate and handle the changing demands of businesses, according to David Craver, co-chief investment officer at Lone Pine Capital.

Deepak Ravichandran, general partner at Alkeon Capital, said as the leading online payments player in the rapidly accelerating Indian digital payments market, Razorpay has continued to innovate and blaze new trails.

Snapshot:

• Razorpay raised US$ 375 million in its Series F financing round; Lone Pine Capital, Alkeon Capital, and TCV led the financing.
• Since its launch in 2014, the company has raised US$ 741.5 million.
•  In October 2020, it was valued at US$1 billion, and in April 2021, it was valued at US$ 3 billion.
•  When it raised US$ 1 billion funds in 2019, Paytm was valued at US$16 billion.
• When PhonePe raised US$700 million in fundraising in December 2020, it was valued at US$ 5.5 billion. It is the third most valuable fintech start-up in India.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.