Indian start-up Razorpay achieved unicorn status after raising $ 100 million in a Series D funding round, the company said in a declaration Monday (Oct 12).
The investment was co-led by GIC, the Singapore sovereign wealth fund, and Sequoia Capital India. Existing investors Y Combinator, Matrix Partners India, Tiger Global and Ribbit Capital also participated in the round. The funding will be used to increase the company’s headcount and to improve its neo-banking platform Razorpay and its lending arm Razorpay Capital.
The new funding has given Razorpay $ 206.5 million in investment since its inception in 2014. Its most recent fundraiser includes $ 75 million in a 2019 Series C cycle.
Razorpay was started by Shashank Kumar and Harshil Mathur and was born out of a crowdfunding project. The startup received a lot of attention after being chosen for the Y Combiner acceleration program.
“Five years ago, when Harshil and I moved to Bangalore to start Razorpay, the startup ecosystem was still nascent and was less than ten years old,” said co-founder Kumar. “For most businesses, accepting payments online was a major struggle and it was a stumbling block in India’s digitization campaign.
He added that they started Razorpay to help all businesses accept digital payments. “Our commitment continues: to understand the problems our customers face and to develop solutions using what we know best: technology. “
“At Razorpay, we’ve always been a payments company and we’ve always focused on financial solutions. With this funding, we want to go further within our reach. We aim to create more in-depth technological products and solutions, as we always have, ”said co-founder and CEO Mathur. TechCrunch.
He added that the company is now focused on building its neo-banking platform and lending arm. “The neobank is growing by 100%. We believe that both will contribute a significant portion of our revenues in fiscal year 21. ”
The company’s new cash advance Solution enables small and medium-sized enterprises (SMEs) to borrow working capital in seconds. India has over 63 million SMEs, and around 60% of them do not have easy access to loans.