Razorpay enters the unicorn club with $100 Mn round led by GIC and Sequoia

Business-focused payment gateway and neo banking platform Razorpay has raised $100 million in a Series D funding round led by Singapore-based GIC and existing backer Sequoia Capital at a valuation of over $1 billion. 

Other existing investors including Ribbit Capital, Tiger Global Management, Y Combinator and Matrix Partners India also participated in the round. 

Last month, Entrackr had exclusively reported about Razorpay’s upcoming round at a valuation of $1 billion. 

“The funding comes with a major milestone of Razorpay becoming the newest unicorn in India. GIC is also a great partner at this stage of the company because they are a significant public market investor,” said Shashank Kumar, co-founder of Razorpay on the company’s blog.

With this, Razorpay has become the fourth unicorn in the payments space in India after Paytm, Billdesk and Pine Labs. Previously, the company had raised $75 million led by Ribbit Capital in June last year at a valuation of nearly $450 million.

Brainchild of Harshil Mathur and Kumar, six-year-old Razorpay offers payments and other financial infrastructure to help businesses manage money flow. Bulk of the Bengaluru-based company’s revenue comes from online payment gateway and it counts Facebook, Google, Jio, Zerodha, OkCredit and Hotstar, among others, as its major clients. 

While Razorpay has been trying hard to procure an NBFC licence, it recently launched a collateral-free credit line ‘Cash Advance’ for businesses through third-party lenders. It offers loans in the range of Rs 50,000 to Rs 10 lakh without any paperwork and aims to disburse a total credit worth Rs 100 crore by the end of this year.

In the neobanking segment, the company competes with Open, which had last secured a $30 million worth Series B round led by Tiger Global and Tanglin Venture Partners in June 2019. 

Razorpay is yet to file its annual statements for the financial year ending 2020, however, the company has significantly improved its financials in FY19. It registered 2.14X growth in operating revenue amounting to Rs 193 crore with losses of Rs 3 crore, a 74.5% decrease as compared to Rs 13 crore in FY18.