Razorpay Is India's Most Valued Fintech Startup, Raises $375 Million In Latest Funding Round At A Valuation Of $7.5 Billion

Razorpay, a Bengaluru-headquartered full stack financial solutions company which offers payment processing solutions and digital banking services to businesses, has raised $375 million in a Series F funding round led by Lone Pine Capital, Alkeon Capital and TCV, Techcrunch reported.

Existing investors Tiger Global, Sequoia Capital India, GIC and Y Combinator also participated in the new round.

With the latest round of fundraise, Razorpay has more than doubled its valuation to $7.5 billion from $3 billion that it was valued in the previous round of fund raise.

Razorpay has raised a total of $741.5 Million in investments since its inception in 2014. It was founded by two alumnus of IIT Roorkee, Shashank Kumar and Harshil Mathur.

In July this year, Razorpay had announced its Series E fundraise of $160 Million co-led by Sequoia Capital and GIC, Singapore’s sovereign wealth fund, along with participation from Ribbit Capital and Matrix Partners. The Series E funding had tripled the company’s valuation to $3 Billion in less than six months.

Razorpay had attained 'Unicorn' status in October 2020 when it breached the $1 billion valuation.

Razorpay will deploy the fresh funds to build "intelligent technologies" to benefit small businesses, co-founder and CEO Harshil Mathur said in the statement. "We want them to spend less time managing compliance and operations and invest more time in creating new products, building on new ideas and thinking scale."

The company says it facilitated $60 billion worth of payments in 2021. Among its 8 million customers are social media platform Facebook, ride hailer Ola and food delivery outfits Zomato and Swiggy. It aims to process at least $90 billion in payments for 10 million customers in 2022.

Razorpay launched a digital banking service for small businesses in 2018, offering loans, tax compliance, payroll management and other services.