Razorpay, a Bangalore-based fintech startup, has reportedly entered the coveted Unicorn club after raising USD 100 million in its latest Series D financing round. Sources close to the matter claimed that the funding round was co-led by a Singapore-based sovereign wealth fund GIC and Sequoia India.
For those unfamiliar, Razorpay is one of the fastest growing Indian startups. The company started off by accepting, processing, and disbursing money through online platforms for small businesses and enterprises.
Currently, Razorpay provides loans to businesses and has launched a neo-banking platform which offers corporate credit cards and other products & services, cited sources close to the company.
According to the trusted reports, existing investors of Razorpay such as Y Combinator, Ribbit Capital, Matrix Partners and Tiger Global Management LLC, had also participated in the recent financial round. These investors had a combined investment of around USD 206.5 million in the Bangalore-based startup.
Chief Investment Officer for Private Equity at GIC, Choo Yong Cheen, was quoted saying that Razorpay has developed to be a one of the prominent fintech companies. He added that GIC is looking forward to partner with Razorpay in its efforts of transforming banking and payment processes.
Co-founder and Chief Executive at Razorpay, Harshil Mathur, was reported stating that latest funding round allowed the fintech startup to reach a valuation of USD 1 billion. He claimed that around 35% of the funding will be invested in RazorpayX and Razorpay Capital, on the neo-banking and capital side.
Mathur added that some of the growth of Razorpay can be attributed to the COVID-19 pandemic, which has evidently enhanced adoption of digital solutions across various businesses.
The company intends to work with more than 50 million businesses by the year 2025 and acquire new firms as well as explore various opportunities in inorganic expansion in the neo-banking spectrum.