Payments solution company Razorpay has received $75 million in Series C funding. The key investors in this round are Sequoia India and Ribbit Capital. Tiger Global and Y Combinator have also joined in this round. The earlier fund raising in the Series A and B stages got them $31.5 million. There are as many as 33 angel investors in Razorpay, apart from a strategic investment by MasterCard.
The funds now raised in the Series C funding will be deployed in developing new technologies. The company is specifically focusing on two of its products, Razorpay X and Razorpay Capital. The first is a neo-banking platform and the second will deal with lending. These are businesses Razorpay is expecting to bring in a major portion of its revenues.
“The last four and a half years have been an exciting adventure for the Razorpay family. It feels great to know that we’ve been on the right track and have been able to create value and impact for our businesses. We started off with a purpose to solve the payment problems that the underserved markets like the MSMEs faced. Our key mission is that while our partner businesses disrupt the Indian economy with new ideas, products, experiences and new jobs, we want to power their financial systems. Today, over 350,000 disruptors are partnered with us to create the difference that we are here to make. This funding has come in at a time when fintech and banking is evolving beyond payments and lending and we would like to change the way businesses access banking products,” Harshil Mathur, CEO and Co-Founder, Razorpay said in a statement.
The startup has plans to recruit more personnel and lift the number to 700. This may be a long-drawn process stretching up to next year. The new hiring may include personnel at senior levels who can head the different SBUs.
Razorpay sees itself in the fintech space laying a key role in the financing sector where the MSMEs in India benefitted the most. Their services are quite disruptive in nature and finding new ways to help businesses access banking products.
Speaking about the investment, Ishaan Mittal, Principal, Sequoia Capital India Advisors said, “Sequoia has been an active investor in the payments space globally and every decade a multi-billion dollar company gets created. The one thing common across these companies is their maniacal focus on great products that solve a clear customer problem. When we spoke to various merchants in India, they unanimously vouched for Razorpay’s product superiority and innovative offerings. Their strength lies in their technology, people and organizational culture and we are enthusiastic about partnering with them as they transform the payments ecosystem in India.”
Razorpay has posted an impressive growth right from the time it got established in 2014. In the last one year alone, the company has clocked a phenomenal 500% growth. IRCTC, Airtel, BookMyShow, Zomato, Swiggy, Yatra and Zerodha are some of their marquee customers where their digital payments are handled by them. The company plans to do even better this year. There are 350,000 customers already on their customer list and they expect this to rise to 450,000 by next year.