Unicorn Razorpay gets 3rd horn with $160-million fund round

Razorpay has raised a funding of $160 million in their Series E round, again co-led by Singapore’s sovereign wealth fund and also with Ribbit Capital and Matrix Partners on board. 

Harshil Mathur, CEO and Co-founder of the Indian firm, said this funding round took the startup to a valuation of $3 billion, trebling the figure just several months after reaching unicorn status in their fourth funding round in October 2020.

“From the support we have received to their (investors) understanding of our vision, it has made us stronger,” said Mathur. “All that we have done and what we plan to do is with a singular objective of customer delight and allowing entrepreneurs and enterprises to scale up without worrying about their finance backbone.”

He and co-founder Shashank Kumar started the business banking platform Razorpay X less than two years ago. Now, RazorpayX powers the banking requirements of more than 10,000 businesses and has seen a multi-fold increase in transaction volume over the past 12 months. 

Mathur said a portion of the funds raised will be allocated to RazorpayX to develop tailored products on a new tech stack to further enhance convenience and security. 

“Another major area that we have seen traction in is the working capital sector, where we are already disbursing credit worth 700 crore rupees [about $93.2 million] per month to help entrepreneurs get access to working capital,” he said.

“By the end of this year, we want to increase that amount to Rs 1000cr [$133.2 million] per month,” he aded. “We have also realized that the problem of access and ease of payments for startups and even enterprises is present across developing countries in the world.”

Further, Mathur said Razorpay is evaluating an expansion into Southeast Asia, adding that their experience in developing products across a country as diverse as India has prepared them for such an initiative.

“From payments to business banking to working capital, we have built products with the singular commitment we have to our customers,” said Mathur. “Today we are a fintech partner enabling end-to-end money movement and building the central nervous system for Indian businesses.”