Bangalore-based payments solution startup Razorpay has raiaed fresh US$75 million in Series C funding round of financing led by Ribbit Capital, a Palo Alto-based venture capital firm that invests globally in ventures working in financial services, along with contribution from Sequoia Capital.
Existing investors Tiger Global Management and Y Combinator’s Continuity Fund also participated in the funding round, reported Economic Times, citing Harshil Mathur, chief executive of Razorpay.
Razorpay plans to use the fresh capital in strengthening its two new business lines – neo-banking platform Razorpay X and its lending arm Razorpay Credit.
With latest funding, the 5-year-old startup is valued at about $450 million, said the report. The xact figure of valuation however is not officially acknowledged by the company.
In March, IndianWeb2.com first reported that Razorpay is in advanced discussions with Silicon Valley-based venture capital firm Sequoia Capital to raise $75-100 million in new funding.
Razorpay, which also counts Matrix Partners, MasterCard and a host of angel investors, among its list of backers, has raised a total of about $106 Mn to date, according to IndianWeb2.com estimates. Prior to this latest funding, Razorpay last raised funds of $20 million in January, 2018, which was from Y Combinator, Tiger Global and Matrix Partners.
Founded in 2013, by Harshil Mathur and Shashank Kumar, Razorpay is the only payments solution in India which allows businesses to accept, process and disburse payments with its range of product suite. The startup provides access to all payment modes including credit card, debit card, netbanking, UPI and popular wallets including JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money and PayZapp.
In January, Rajorpay launched two new verticals – Razorpay X and Razorpay Capital.
Razorpay Capital is lending arm through which the company help businesses on its platform get loans from its partner lenders based on the customer’s transaction pattern and history.
Razorpay X, on other hand, is essentially an AI-driven digital bank account where businesses can own and operate their account. It is a back-end platform, where it allows businesses to manage their entire current account through Razorpay. It is essentially a digital bank account where businesses can own and operate their account.