Y Combinator-backed, digital payments and lending platform, Razorpay is reportedly in talks with Sequoia Capital and others, to raise about $75 Mn – $100 Mn.
This new capital will reportedly be used to aid the expansion of company’s recently launched business arm, Razorpay 2.0. The Bengaluru-based startup has raised a total of $31.5 Mn in funding till now. Earlier in 2018, Razorpay has raised a Series B funding round of $20 Mn, which was led by Tiger Global and Y Combinator along with the participation from Matrix Partners.
This expected round could value the five year-old startup at about $425 Mn – $450 Mn, an ET Tech report said.
When contacted, Razorpay has called the funding news as speculative and Sequoia Capital refused to comment on the matter.
Sequoia Capital has earlier invested in multiple fintech startups, including two other payment gateways – Mobikwik and Citrus Payment, consumer lending startups such as MoneyTap and Capital Float, NBFC lending startup Finova Capital and a point of sales machine manufacturer Pine Labs.
The Bengaluru-based startup was founded by Shashank Kumar and Harshil Mathur in 2013, as a payment gateway service. Razorpay has on boarded over 2 lakh business till now, including names such as IRCTC, Airtel, Zomato, BookMyShow, GoIbibo and Swiggy.
In 2017, the company had rebranded its solutions under Razorpay 2.0. From a being a simply payments gateway to offering a suite of B2B payments solutions, the payments startup had then introduced Razorpay Route, Razorpay Smart Collect, Razorpay Subscriptions and Invoices, all aiming to facilitate automated digital transactions to its clients.
Later in 2018, the payments startup has forayed into the lending sector with the launch of Razorpay Capital, a lending marketplace offering quick settlements and collateral-free loans. The company has also launched RazorpayX, which claims to simplify, accelerate, and automate small and medium enterprise’s (SME) banking operations such as accepting payments, managing cash flows, reconciling transactions and enabling flexible payouts.