Sunday, December 19, 2021

Fintech unicorn Razorpay's value jumps to $7.5 bn; up 7.5x in 15 months

 Razorpay was valued at $1 billion in October 2020 and $3 billion in April 2021


Fintech unicorn Razorpay has raised $375 million in the Series F round of funding at a $7.5-billion valuation, making it India’s second-most valuable start-up in this space, after Paytm. The company valuation has surged over seven times in 15 months, helping it push Walmart-owned digital payments firm PhonePe to the third spot on the country’s most-valuable fintech list.

Razorpay’s latest round of fundraising was led by Lone Pine Capital, Alkon Capital, and TCV. It also received participation from existing investors like Tiger Global, Sequoia Capital India, GIC, and Y Combinator. The money would be invested in Razorpay’s goal to become a full-stack financial solutions company, providing for all payments and banking needs of businesses on one platform.

It also plans to use the fresh fund to scale up its business banking suite RazorpayX and offer new banking solutions in 2022. The firm plans to invest in new acquisitions in 2022 and expand its presence across the globe, starting with the Southeast Asian countries. Razorpay is also looking to hire over 600 employees to fuel these growth plans.

Razorpay was valued at $1 billion in October 2020 and $3 billion in April 2021. With the Series-F round, Razorpay has raised a total of $741.5 million in investments since its inception in 2014.

Paytm, which went public in November, was valued at $16 billion when it raised $1 billion in a funding round in 2019.

PhonePe was valued at $5.5 billion in December 2020, when it raised $700 million in primary capital from the existing Flipkart investors, including Tiger Global.

“We’ve come a long way in these seven years, and more so since 2020,” said Harshil Mathur, CEO and co-founder of Razorpay. “Moving forward, we believe we will radically change how payments and banking are done in nearly every sector of India.”

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