Razorpay recently received a funding of $100 million backed by GIC, Ribbit Capital, Tiger Global, Y-Combinator and Matrix Partners. The Bengaluru based payment gateway app just entered the unicorn club after crossing the $1 billion evaluation mark. This is a huge growth for the company which was just evaluated at around $100 million in 2019.
The company first started in 2014 and was founded by Shashank Kumar and Harshil Mathur. Razorpay provides digital payment services to small businesses and even large ones like Airtel, NSE etc. They also have over 200k businesses on their platform and is the fifth largest Indian fintech firm. The main job of the startup is to manage the flow of money for businesses and generates 80% of its revenue from the same.
Thoughts on the investment
Harshil Mathur, chief executive and co-founder of Razorpay said, “GIC is a good long-term investor to have. Their knowledge about public markets and investment in firms like Bajaj Finserv Ltd and Bandhan Bank Ltd will help us in our journey to go public. With this fundraiser, we will focus on going deeper into the Indian market and broaden our product portfolio to grow our business and achieve profitability”.
Expressing their thoughts about the same Chief Investment Officer for Private Equity at GIC, Choo Yong Cheen also said, “Razorpay has established itself as a clear leader, with its strong focus on customer experience and product innovation. GIC also has a long track record of partnering with leading fintech companies globally and is delighted to partner with Razorpay in its journey to transform payments and banking”.
Plans of increasing portfolio and acquiring startups
Razorpay not only looks forward to keeping providing their payment services but also increase their portfolio. At present, they plan to launch products for its neo-banking business RazorPay x and also lending business RazorPay capital. They also want to double their growth in the upcoming year. The company has already acquired an AI company back in 2019 and plans to acquire more such companies in the future.
Speaking about this Mathur said, “It is too early to speak on which startups we are looking to acquire. Since these are still in the discussion phase. But we continue to look at inorganic avenues of growth through opportunistic acquisitions,”
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