Sunday, November, 27, 2022 09:08:50
Razorpay secures $75 million in equity funding led by Ribbit Capital
Razorpay, an online payment company, has recently announced that it has raised $75 million in a series C funding round, led by investment firm Ribbit capital along with venture capital firm Sequoia Capital. The firm plans to use this investment to strengthen its two new business lines - lending arm Razorpay Credit & its neo-banking platform Razorpay X. Followed by the conclusion of the latest funding round, the company is expected to have a total valuation of $450 million, cite sources.
Reportedly, this is the latest investment for Sequoia Capital in the broader fintech sector, which had previously invested in and exited FreeCharge & Citrus Pay, and continues to count MobiKwik as a part of its portfolio.
Harshil Mathur, CEO, Razorpay was reportedly quoted saying that the company is planning to increase its employee count to 700, by the end of the current financial year, particularly in senior management roles, and will also perform potential acquisitions over the next 6 months. Razorpay X is an expanded version of the product that reconciles transactions, manages cash flow, accepts payment, and provides flexible payouts.
Micky Malka, Managing Partner of Ribbit Capital, reportedly stated that the digital payments market in India is massive. Malka also said that Ribbit Capital is elated to be a part of a firm which is building trust between retailers and consumers to allow fast and efficient payment flow in India.
As per sources close to the matter, Razorpay that counts Master-Card, Matrix Partners, and a host of angel investors amongst its financial backers, has secured an investment of about $107 million, since its establishment. The company last raised equity capital in a round led by Tiger Global in first half of 2018.
Mathur further stated that the company has seen an annual disbursal rate of $100 million, under Razorpay Credit. Moreover, the company is expecting its non-payment gateway businesses to contribute around 40% to its overall revenue, over next 2 years, said Mathur.