Juspay Seeks Funding Of $150 Mn To Enter Unicorn Race

Juspay Seeks $150 Mn Funding To Enter Unicorn Race

SUMMARY

The funding round will be led by Kedaara Capital

It will also see participation from WestBridge and SoftBank

The startup will raise the fresh capital at a valuation of $1 Bn

Fintech startup Juspay

is reportedly looking to raise $150 Mn (around INR 1295 Cr)in a funding round led by Kedaara Capital.

The funding round will also see participation from WestBridge and SoftBank, Moneycontrol reported, citing sources close to the matter.

Notably, Juspay will raise the fresh capital at a valuation of $1 Bn, making it a part of the unicorn club.

The startup which counts SoftBank, Accel, and VEF among its key investors, has raised a total of more than $87.42 Mn till date.

This comes at a time when payment aggregators Razorpay and Cashfree are planning to discontinue all third-party partnerships and integrations with payment orchestration platforms like Juspay. With this move, the payment aggregators plan to offer payment gateway services to its customers through direct integrations.

Last month, payment giant PhonePe also informed its merchants that all of its payments solutions will now be offered via direct integrations, cutting out the role of platforms like Juspay.

Founded by Vimal Kumar and Ramanathan RV in 2012, Juspay is a full-stack software-as-a-service (SaaS) platform which offers digital payment gateway services. The startup claims to strengthen businesses with fraud prevention capabilities and optimising operational cost.

Earlier in 2024, Juspay received a nod from the Reserve Bank of India (RBI) to operate as payment aggregators.

Around the same time, the fintech startup bought merchants and bank-focussed software provider LotusPay to boost its banking, financial services and insurance (BFSI) vertical. Back then, the company did not disclose the financial terms of the deal.

Talking on the financial front, Juspay managed to trim down its loss by 7.7% to INR 97.54 Cr in the financial year ending March 2024 (FY24) from INR 105.75 Cr in the previous fiscal year. Meanwhile its operating revenue surged 49.6% during the year under review to INR 319.32 Cr from INR 213.39 Cr in FY23.

Besides, Juspay’s competitor Easebuzz is also in talks to raise INR 200 Cr (around $ 23.5 Mn) in a fresh funding round.

On the contrary, as per Inc42’s report, funding raised by homegrown fintech ventures declined 19% to $2.5 Bn in 2024 compared to $3.1 Bn in the year-ago period.