Razorpay, a Bangalore-based fintech startup, has raised $160 million in a Series G funding round led by Singapore’s sovereign wealth fund, GIC, and venture capital firm Sequoia Capital. The funding round also saw participation from existing investors such as Ribbit Capital, Matrix Partners, and Y Combinator.
With this latest funding, Razorpay’s valuation has surged to $3 billion, making it one of the most valuable fintech startups in India. The company plans to use the funds to expand its product offerings, hire more talent, and explore international markets.
Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay is a payment gateway that enables businesses to accept online payments via credit/debit cards, net banking, UPI, and other digital wallets. The company also offers a range of other financial services such as business loans, payroll management, and vendor payments.
Over the years, Razorpay has emerged as a leading player in India’s digital payments ecosystem, processing over $40 billion worth of transactions annually for more than 5 million businesses. The company has also been recognized for its innovative products and services, winning several awards such as the Best Payment Gateway Award at the Indian Retail and eRetail Awards 2021.
With the new funding, Razorpay plans to expand its product offerings beyond payments. The company aims to become a one-stop-shop for all financial services for businesses, including lending, insurance, and accounting.
Razorpay has already launched several new products in recent months, such as Razorpay Capital, which offers short-term working capital loans to businesses, and Razorpay X, a neo-banking platform that provides businesses with a range of banking services such as account opening, debit cards, and payment gateway integration.
The company also plans to launch Razorpay 2.0, a new version of its payment gateway that will offer enhanced features such as real-time reconciliation, smart routing, and advanced fraud detection.
Razorpay is also looking to expand its presence in international markets. The company has already set up offices in Dubai and Singapore and plans to enter other markets such as Southeast Asia and the Middle East.
The company’s expansion plans are driven by the growing demand for digital payments and financial services in these regions. According to a report by Google, Temasek, and Bain & Company, Southeast Asia’s digital economy is expected to reach $300 billion by 2025, while the Middle East’s digital payments market is expected to grow at a CAGR of 6.5% between 2020 and 2025.
To support its product expansion and international growth plans, Razorpay plans to hire more talent across various functions such as engineering, product management, and sales. The company aims to double its headcount to 1,500 employees over the next 12 months.
Razorpay has already made several key hires in recent months, such as Arpit Chug, who joined as Chief Financial Officer from OYO, and Amitabh Tewary, who joined as Chief Innovation Officer from McKinsey & Company.
Razorpay’s latest funding round is a testament to the company’s strong growth trajectory and its potential to become a leading fintech player not just in India but also in international markets. With its expanded product offerings, international presence, and growing talent pool, Razorpay is well-positioned to capitalize on the growing demand for digital payments and financial services in the coming years.