Bengaluru-based online payment gateway startup Razorpay Software Pvt. Ltd said on Tuesday it has raised $75 million (around Rs 524 crore) in a Series C funding round.
US-based fintech-focussed investor Ribbit Capital and Sequoia Capital India led the funding round, Razorpay said in a statement. Existing investors Tiger Global and Y Combinator also participated in the funding round, it added.
The startup will mainly use the funds to develop new technologies and scale its product suites Razorpay X, its neo-banking platform and lending arm Razorpay Capital. Part of the funds will also go into doubling the headcount to 700 by next year and hire senior members to lead different product verticals.
Razorpay, which was set up in 2013 by IIT Roorkee alumni Shashank Kumar and Harshil Mathur, helps businesses accept online payments via credit card, debit card, internet banking and mobile wallets from customers.
The company claims it grew by 500% in the last one year and expects to see a five-fold jump in revenue by the end of the next fiscal year. Its customers include IRCTC, Airtel, BookMyShow, Zomato, Swiggy, Yatra and Zerodha.
“Our key mission is that while our partner businesses disrupt the Indian economy with new ideas, products, experiences and new jobs, we want to power their financial systems,” said Mathur, who is also the company’s CEO. “Today, over 350,000 disruptors are partnered with us to create the difference that we are here to make.”
Micky Malka, managing partner at Ribbit Capital, said the digital payments market in India is massive. “We expect that with Razorpay’s technology and support, the Indian consumer and the business owners will benefit from a more comprehensive and thorough experience,” he added.
Ribbit Capital's other fintech bets in India include ZestMoney and Capital Float.
Razorpay had raised $20 million last year in a Series B funding round led by Tiger Global and Y Combinator. Existing investor Matrix Partners had also participated in this round.
In July 2016, the company received an undisclosed investment from American payments and financial services company MasterCard.
Since late 2015, the startup has been working with the MasterCard Start Path programme that accelerates e-commerce and fintech startups and gives them access to MasterCard’s network.
Prior to that, it raised $11.5 million from Tiger Global, Matrix Partners and Y Combinator.
Razorpay has 33 angel investors including Snapdeal founders Kunal Bahl and Rohit Bansal, and InMobi founders Abhay Singhal, Amit Gupta and Naveen Tewari.
Fintech funding deals
The fintech sector in India has attracted considerable attention in recent times with many startups trying to establish themselves in segments such as payments, lending, insurance and personal finance.
Earlier this month, OkCredit, which helps merchants keep track of payments and credit records via a mobile application, raised $15.5 million in a Series A funding round led by Tiger Global.
Online lending platform Avail Finance secured $9 million in its Series A funding round led by existing investor Matrix Partners India this month.
In June, electronic payments and banking solutions provider ACI Worldwide Inc. invested an undisclosed sum in Mumbai-based Mindgate Solutions Pvt. Ltd to deliver an end-to-end payments solution for various businesses.
