Funding in the evergreen fintech segment in India is not going to take a break anymore. On average, every fifth company funded by venture capital firms or angels directly or indirectly falls in fintech sector.
For the time being, one of the largest funding in this space is now on the table as digital payments solution provider Razorpay has bagged $75 million in Series C round led by US-based venture capital firm Ribbit Capital and Sequoia India.
The funding talks cropped up in March when media reports claim that it would be raising funds in the range of $75-100 million.
As a part of the deal, the Bengaluru-based startup onboarded new investor Sequoia on company’s cap table while existing backers Tiger Global Management and Y Combinator’s Continuity Fund also participated in the round.
In January 2018, Tiger Global and Y Combinator led a $20 million Series B round in Razorpay at a valuation of around $100 million.
Citing sources, an ET report estimated the valuation of the four-year-old firm at about $450 million.
The fresh capital will be used to strengthening two products – neo banking platform Razorpay X and lending arm Razorpay Capital.
On the growth front, Razorpay aims to garner 40% of its revenue from non-payment gateway business which will be an uphill task for the newly launched products suite.
Razorpay currently has about 350,000 merchants on its platform, is targeting increasing the number to 450,000 by 2020. Besides, the company is also looking to ramp up its workforce to 700 by the end of the current fiscal.
In late 2018, Tiger Global had also started to buy back shares of 140 employees of Razorpay. Employees ranging from team leaders to support executives at its call centre were expected to encash their stock option as a part of this deal.