Razorpay adds $75Mn with Series-C Funding, Co-led by Sequoia India & Ribbit Capital
Author(s): City Air NewsBangalore, June 18, 2019: India’s first converged payments solution company, Razorpay, today announced its Series C funding of $75 million, led by two of the largest venture capital firms, Sequoia India and Ribbit...
Bangalore, June 18, 2019: India’s first converged payments solution company, Razorpay, today announced its Series C funding of $75 million, led by two of the largest venture capital firms, Sequoia India and Ribbit Capital, along with participation from Tiger Global and Y Combinator. The company has seen a tremendous growth so far, in people, technology and market share. They have raised a total of $31.5 million in Series A (2016) and Series B (2018) rounds, along with 33 angel investors and a strategic investment by MasterCard.
With a commitment to democratise digital payments and solve for challenges around money movement, Razorpay aspires to use a significant share of these funds to develop new technologies and scale up its recently expanded product suite, Razorpay X and Razorpay Capital. The company expects its neo-banking platform (Razorpay X) and lending arm (Razorpay Capital), along with the non-payment gateway suite to contribute to 40% of its revenue by next year.
Razorpay also plans to use these funds to double its headcount to 700 by 2020 and hire senior members to lead different product verticals.
Delighted about reaching yet another milestone, Harshil Mathur, CEO and Co-Founder, Razorpay said,
“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."
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.”
Micky Malka, Managing Partner, Ribbit Capital added, “The digital payments market in India is massive. We are excited to be part of a company that is building trust between the consumers and the retailers to enable payments to flow faster and more efficiently in India. We expect that with Razorpay’s technology and support, the Indian consumer and the business owners will benefit from a more comprehensive and thorough experience.”
Razorpay has been charting an exponential growth since its inception. They grew by 500% in the last one year. They company currently powers digital payments for businesses like IRCTC, Airtel, BookMyShow, Zomato, Swiggy, Yatra and Zerodha, among others and plans to increase this to 450,000 by 2020. This converged payments solution company expects a 5x growth in its revenue by the end of the next fiscal year.