India’s briskly expanding fintech scene is getting yet another financial booster dose. Bengaluru-based fintech upstart Razorpay, has announced a $75 million Series C round. This round was co-lead by Ribbit Capital and Sequoia India. With this $75Mn in pocket, the company’s total private fundraising has now crossed the $100Mn mark — $106.7 million to be precise.
Razorpay is a digital payments and lending platform which recently launched another business line – Razorpay Capital. It had previously raised $20 million in Series B round led by Tiger Global and Y-Combinator along with the participation from Matrix Partners.
According to a report by Economic Times, the startup is valued at approximately at $450 million. The startup seeks to increase its team size to 700. With the latest capital that the company is getting, Razorpay is looking for buyouts and investing in some ventures within next few months.
The startup was founded by Shashank Kumar and Harshil Mathur in 2014. It currently powers businesses like Airtel, BookMyShow, IRCTC, Aditya Birla Capital, NSE and many others as a digital payment service provider. Razorpay currently supports 100 currencies for international digital payments – including U.S. Dollar (USD), European Dollar (EUR) and British Pound (GBP).
With this, the company targets the MSME (Micro, Small and Medium Enterprises) segment, which includes small and medium businesses, by providing them with means to accept payments from other countries. The company expects 5 times increase in its revenue by the end of next year.
“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,” said Micky Malka, Managing Partner of Ribbit Capital.
While the world around us has accepted the shift from physical currency to digital payments quite seamlessly, it’s not the case for the B2B (business-to-business) transactions. With growing startup and investment interest, the processes are starting to become simpler especially for small businesses. India’s fintech market has a transaction value of $33 billion as of 2016 and is expected to increase to $73 billion by 2020. For a sector growing so fast, it is a great opportunity for startups like Razorpay to establish themselves.