Razorpay’s valuation soars to $7.5 Bn with $375 Mn new round

Razorpay, a payment gateway and neo banking platform for business owners, has raised $375 million in a Series F round led by Lone Pine Capital, Alkeon Capital, and TCV.

This is the company’s second round of funding this year, following a $160 million Series F led by Singapore’s sovereign wealth fund GIC and Sequoia India in April. According to the company, the new financing has resulted in a valuation of $7.5 billion, up from $3 billion in the previous on

Since its inception seven years ago, the fintech firm has raised a total of $741.5 million in investment. Razorpay has also become India’s second most valuable fintech company, trailing only Paytm, which recently made its public debut to a lukewarm reception.

The proceeds will be used to build a full-stack financial solutions platform and to investigate inorganic growth opportunities through investments and acquisitions. Razorpay paid an undisclosed sum for Bengaluru-based lending startup Tera Finlabs in July.

It has so far acquired three companies, including Thirdwatch and Opfin.

Razorpay, which currently claims to power payments for over 8 million businesses including Facebook, Ola, Zomato, Swiggy, and CRED, has set a target of reaching 10 million businesses by 2022. It competes with a clutch of companies including PayU, Paytm, Cashfree, CCAvenue in the payment gateway business whereas Open is its direct competitor in the nebanking space.

The Harshil Mathur-led firm also claimed $60 billion TPV (total payment volume) as of early December 2021 and plans to grow this to $90 billion by the end of this year.


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