Razorpay has raised $100 million in funding in Series D round from Sequoia Capital India and GIC, making the payment solutions provider the sixth Indian unicorn this year, as this takes its valuation to over $1 billion.
Singapore’s sovereign wealth fund GIC led this round, and also saw the participation of Riger Global, Y Combinator Ribbit Capital and Matrix Partners.
With the Series D funding, Razorpay has raised $206.5 million in funding so far. In a statement, Razorpay said that it’s going to use the latest funding to accelerate its RazorpayX and Razorpay Capital product lines.
Razorpay X is a neo-banking platform and Razorpay Capital is the firm’s lending arm.
Razorpay said that by FY21, it expects these two product lines to contribute to 35% of the revenue, as well as double their count of partner business.
The funding, it said, will also be used to hire 500 additional employees by FY21.
CEO and co-founder Harshil Mathur said, “It’s a confirmation of always being focussed towards chasing the vision, not the competition. This funding represents a huge endorsement of our belief of powering the financial infrastructure for disruptive businesses, simplifying the entire money flow so that businesses can focus more on disrupting the Indian economy with their new ideas, products and experiences, everyday.”
Harshil says that RazorpayX has seen 100% growth, and that neobanking is a nascent but fast-developing space in the Indian market.
Speaking about the future, Harshil said that they are looking at powering payments and banking for 50 million businesses by 2025. “We will continue to make an impactful contribution to the growth of the industry, aid adoption in the under-served markets and drive new practices and a new thinking for the industry to follow. And this investment fits perfectly with our growth strategy,” he said.
Razorpay said that the demand for digital payments during the pandemic has accelerated its growth.