Razorpay raised funding to expand into Southeast Asia and scale up its business operations. Here are the top-line bullets you need to know.
India-based digital payment and business banking unicorn Razorpay has raised $160M in Series E funding. The round was co-led by GIC & Sequoia Capital India with participation from other prominent investors.
How’s the company performing?
- Bangalore, India-based Razorpay offers payment gateway services to SMEs and startups.
- Its challenger banking arm, RazorpayX increased it customer base to 15,000 businesses since October 2020 and saw a transaction growth of 400% over the last year. In 2020, Razorpay Capital showed about $80M in lending, up from less than $40M in 2019.
- The company reportedly serves 5M merchants, including Facebook, Airtel, Ola, Zomato, Cred, and ICICI Prudential, among others.
- The company’s payment volume grew approximately 45% month-over-month in the last 6 months and it plans to reach $50B in total payment volume by the end of 2021. RazorPay has also reported a 2.6x increase in revenue, reaching INR 509 crores ($68M) in 2020.
- In 2019, Razorpay acquired Opfin, a payroll & HR management software firm, and Thirdwatch, which develops algorithms for real-time fraud prevention.
Why does the market matter?
- The digital payment market is projected to grow at a CAGR of 14.2% to reach a value of $154B (by 2025), according to a MarketsandMarkets report.
- The Covid-19 pandemic drove massive growth in e-commerce and digital transactions.
- Banks are now ramping up investment in digital payment infrastructure to compete with major tech players like Google, Amazon, and Facebook, leading to further market growth.
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