Bengaluru (IANS) Full-stack financial solutions company Razorpay has raised $100 million in its Series D round of funding, making it another Indian unicorn with over $1 billion in valuation, joining the big startup-turned-unicorn league of BYJU's, Swiggy, Zomato, Paytm and more.
The round was co-led by GIC, Singapore's sovereign wealth fund and Sequoia India, along with participation from Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners, the company said in a statement.
Witnessing a 300 per cent growth in its business during the last six months, the new funding gives Razorpay $206.5 million in investments since its inception in 2014 (this includes recent $75 Million raise in Series C in 2019).
"This funding represents a huge endorsement of our belief of powering the financial infrastructure for disruptive businesses, simplifying the entire money flow so that businesses can focus more on disrupting the Indian economy with their new ideas, products and experiences, everyday," said Harshil Mathur, CEO and Co-Founder.
Razorpay plans to use the new funding to further strengthen and accelerate its two new product lines – RazorpayX which is a neo-banking platform and lending arm Razorpay Capital, and invest in new initiatives to empower SMEs.
The company expects RazorpayX and Razorpay Capital to contribute to 35 per cent of its revenue, with a 100 per cent increase in the company's count of partner businesses, by FY21.
The funds raised will also be used towards hiring additional 500 employees.
"Neobanking is a nascent but fast-developing space in the Indian market and has the potential to become the one-stop platform for a business' banking needs. This pushes us to develop new technologies that meet the rising demand," Mathur said.
Despite the Covid-19 disruption, the fintech market is expected to grow to Rs 6.2 lakh crore by 2025.
"We will power payments and banking for 50 million businesses by 2025," Mathur added.
Founded by IIT Roorkee alumni Shashank Kumar and Mathur, Razorpay is the second Indian company to be a part of Silicon Valley's largest tech accelerator, Y Combinator.
Around 33 angel investors have invested in Razorpay's mission to simplify payments and banking and redefine how finance works in India.