RazorPay Software Pvt. Ltd. has become the most-valued Indian fintech startup as One97 Communications’ (Paytm’s) share price hit a new low of Rs. 771 apiece on Thursday amid the battering that the markets took in the wake of Russia opening attack on Ukraine.
RazorPay, a digital payments and financial services provider, achieved a unicorn status in October 2020 when it raised $100 million in a round co-led by GIC and Sequoia Capital. In December 2021, its valuation surged over seven times through its series F round of funding co-led by Lone Pine Capital, Alkeon Capital and TCV where the firm raised $375 million at a valuation of $7.5 billion.
A month prior to that, Paytm announced an initial public offering (IPO) at an issue price of Rs 2,150 apiece, commanding a valuation of close to $20 billion. While the largest Indian IPO issue got oversubscribed, Paytm’s equity value got corrected to $14.5 billion on the day of its listing, which was still close to double the size from the closest peer RazorPay.
In fact, it was valued at over $16 billion when it raised $1 billion from T Rowe Price back in 2019.
On Thursday, Paytm’s stock price hit a new low with its equity valuation plunging to $6.67 billion (Rs 50,000 crore) making RazorPay the most valued fintech startup in India.
While new-age technology start-ups did debut on the bourses during 2021, they are yet to establish their ground and are facing trust issues in terms of bloated valuations that were being supported by the private investors prior to the listing.
As per a VCCircle analysis, all of the new-age technology start-ups that got listed last year have lost over 50% from their respective peak equity valuations.
