The payments solution platform Razorpay is in talks with its existing investor GIC for a $150-200 million fundraise which could almost double the startup’s valuation to $2 billion.
Just six months ago, the firm had reached the $1 billion milestones. If the funding materializes, it would be the fastest increase in valuations of any Indian startup company.
The fund could be used to strengthen technology for fraud analytics and security features and expand the platform, with chances of growth in 2021 looking good.
The Singapore-based sovereign investment fund is expected to be the leading investor with information coming in that other existing investors in the firms like Sequoia Capital and Tiger Global, would join later.
The firm could command strong valuations due to India’s significant shift towards digital payments and favorable investors’ sentiments towards fintech companies.
The startup had gained unicorn status in October 2020 at a valuation of over $1 billion after raising $100 million from GIC, Sequoia, Matrix Partners, Ribbit Capital, Tiger Global, and Y-Combinator.
The firm, which was founded in 2014, has tapped a total fund of $206.5 million in four investment rounds since its inception.
The fintech firm aims to clock $50 billion in total payment volume (TPV) by the end of 2021. In December last, the company processes payments worth $30 billion and it is set to reach $50 billion in the next year.
At present, Razorpay powers payments for over 5 million businesses, including Airtel, BookMyShow, Ola, Zomato, Swiggy, Cred, and ICICI Prudential.
It now aims to reach 10 million businesses by 2021. A key area of growth for Razorpay is business banking.
Through its neo-banking arm RazorpayX, the company has been disbursing working capital of Rs 250 crore per month and aims to increase it to Rs 500 crore a month by 2021.
(The story is based on a Economic Times report)