Bengaluru: Payments solution company, Razorpay, raised $75 million in its Series C funding round, led by venture capital investors Ribbit Capital and Sequoia Capital India, along with participation from Tiger Global and Y Combinator.
The company intends to use the funds raised to scale-up its neo-banking and lending products - Razorpay X and Razorpay Capital - and double its headcount to 700 and increase merchant count to 450,000 by 2020, among others. The company expects Razorpay X and Razorpay Capital, along with the non-payment gateway suite to contribute to 40% of its revenue by next year, it said in a statement on Tuesday.
So far, Razorpay has raised a total of $31.5 million in Series A (2016) and Series B (2018) rounds, along with 33 angel investors and a strategic investment by MasterCard.
“We started off with a purpose to solve the payment problems that the underserved markets like the MSMEs faced. 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 Harshil Mathur, chief executive and co-ounder, Razorpay.
Sequoia Capital has been an active investor in the payments space globally. “The one thing common across these companies is their maniacal focus on great products that solve a clear customer problem. When we spoke to various merchants in India, they unanimously vouched for Razorpay’s product superiority and innovative offerings. Their strength lies in their technology, people and organizational culture," said Ishaan Mittal, principal, Sequoia Capital India Advisors.
Established in 2014, Razorpay provides tech payment solutions to over 350,000 businesses. It said it grew 500% in the last one year. It currently powers digital payments for businesses like IRCTC, Airtel, BookMyShow, Zomato, Swiggy, Yatra and Zerodha, among others.