Bengaluru-Based Fintech Startup Razorpay To Raise About $100 Mn

Bengaluru-Based Fintech Startup Razorpay To Raise About $100 Mn

SUMMARY

Sequoia Capital to lead this fresh funding round

Razorpay recently forayed into lending sector with the launch of Razorpay Capital

The Bengaluru-based company has raised a total of $31.5 Mn in funding till now

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. 

In the next five years, both the digital payments market and digital lending market are set to hit $1 Tn each.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Bengaluru-Based Fintech Startup Razorpay To Raise About $100 Mn-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Bengaluru-Based Fintech Startup Razorpay To Raise About $100 Mn-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Bengaluru-Based Fintech Startup Razorpay To Raise About $100 Mn-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Bengaluru-Based Fintech Startup Razorpay To Raise About $100 Mn-Inc42 Media
Bengaluru-Based Fintech Startup Razorpay To Raise About $100 Mn-Inc42 Media
You’re in Good company