Share This Article
Payment gateway startup Razorpay announced on Sunday that it has raked in $375 Mn in its Series F round. Lone capital, Alkeon Capital and TCV spearheaded the fresh round. The Bengaluru based startup has commanded a valuation of $7.5 Bn in the latest round. This makes the Sequoia and Tiger Global backed startup India’s second most valued fintech company after Paytm, which recently got a muted response from investors for its IPO.
This is Razorpay’s third funding round in the ongoing year. It had raised $160 Mn in April at $3 Bn valuation, followed by a strategic undisclosed investment by CRM giant Salesforce in September. This marked Salesforce’s second investment in India.
The high-profile startup said that it will use the latest funds for developing full-stack financial solutions and exploring inorganic growth through investment and acquisitions. To derive inorganic growth, the company will look to acquire companies dealing in B2B software segment and are focused on MSMEs, the Bengaluru based company further added.
It must be noted that Razorpay has already made a strategic investment in e-commerce focused shipping solutions Shiprocket.
Apart from its core business of payment gateway, since few years Razorpay has been steadily adding new verticals for bolstering its financial services. The company had forayed in neo banking and lending space in 2018.
The likes of Razorpay has been in pressure to build up their war chest especially after PayU acquired Billdesk for whopping $4.7 bn earlier this year, marking the biggest ever consolidation in India’s new age fintech industry. Apart from PayU, the company competes with Instamojo, Cashfree, Paypal, Paytm and CCAvenue. In the neo banking space, the startup competes with host of well-funded startups.
According to Razorpay, it provides payment services to nearly 8 Mn companies including the likes of Facebook, Zomato, Swiggy, Ola and many others. While filing this story, we came to know that another two unicorns have raised fresh funds. These two unicorns are Car24 and OfBusiness.
