Indian startup Razorpay hit unicorn status after raising $100 million in a Series D funding round, the company said in a statement on Monday (Oct. 12).
The funding was co-led by GIC, Singapore’s sovereign wealth fund, and Sequoia Capital India. Current traders Y Combinator, Matrix Companions India, Tiger World and Ribbit Capital additionally participated within the spherical. The funding will likely be used to broaden the corporate’s workforce and to boost its neobanking platform Razorpay and its lending arm Razorpay Capital.
The brand new funding offers Razorpay $206.5 million in investments since its inception in 2014. Its most up-to-date fundraise contains $75 million in a 2019 Collection C spherical.
Razorpay was launched by Shashank Kumar and Harshil Mathur and was born out of a crowd-funding challenge. The startup obtained quite a lot of consideration after being chosen for the Y Combinator accelerator program.
“5 years in the past, when Harshil and I moved to Bangalore to begin Razorpay, the startup ecosystem was nonetheless nascent and fewer than a decade previous,” mentioned Co-Founder Kumar. “For many companies, accepting on-line funds was a significant battle and it was a stumbling block in India’s digitization drive.”
He added that they launched Razorpay to assist all companies settle for digital funds. “Our dedication lives on — understanding the issues our prospects face and constructing options by way of what we all know finest — know-how.”
“We at Razorpay have all the time been a funds firm, and our focus has all the time been monetary options. With this funding we need to go additional in our attain. We purpose to construct deeper tech merchandise and options, as we all the time have accomplished,” Co-Founder and Chief Government Mathur instructed TechCrunch.
He added that the corporate is now centered on constructing out its neo-banking platform and the lending arm. “Neobanking is witnessing a 100% development. We imagine each will contribute in the direction of a big a part of our income in FY21.”
The corporate’s new money advance solution permits small and medium-sized companies (SMBs) to borrow working capital inside seconds. India has over 63 million SMBs, and about 60 % of them lack quick access to loans.