Bengaluru-based fintech unicorn Razorpay is aiming to raise fresh funds between $200 Mn to $250 Mn in the coming days. The eight-year-old startup is reportedly in talks with global investors to raise the same amount at a valuation of $4Bn. As per a media report, Razorpay is in talks with New-York based Tiger Global Management, Coatue Management, D1 Capital Partners, DST Global, Dragoneer Investment Group, Falcon Edge Capital and others to raise the fresh round of funds.
One of the people aware of the development told LiveMint that the process to close the new round has expedited after Prosus’s PayU acquired India’s BillDesk for $4.7 Bn. The Prosus-BillDesk deal, announced earlier on Tuesday (August 31), was the largest acquisition in India’s digital payments space. It was claimed that PayU and BillDesk will emerge as one of the leading online payments providers globally in terms of total payment volume.
Earlier in April, Razorpay had closed its Series E round worth $160 Mn that was co-led by GIC, Sequoia Capital, along with Matrix Partners and Ribbit Capital. The round pegged Razorpay’s valuation at $3 Bn. The startup last year entered the prestigious unicorn club after raising $100 Mn from Singapore’s GIC and existing investor Sequoia Capital, along with others. Razorpay had said that its valuation was little more than $1 Bn. Within almost a year, Razorpay is likely to quadruple its valuation. In 2019, Razorpay had raised $75 Mn in its Series C round at a valuation of $106.7 Mn.
Founded by Shashank Kumar and Harshil Mathur in 2014 as a payment gateway, Razorpay now offers SME payroll management, banking, lending, payments, insurance needs and others. The startup claims to enable digital payments for over 200K small and large businesses, including Airtel, BookMyShow, IRCTC, Aditya Birla Capital, NSE, Swiggy among others.
Micro-blogging platform Twitter earlier this year integrated Razorpay to enable ‘tipping features for Indian users. The startup in July this year also acquired TERA Finlabs, an AI-based risk tech SaaS Platform, for an undisclosed amount.