Bengaluru-based payments processing platform Razorpay has raised around $375 million in its Series F round co-led by Lone Pine Capital, Alkeon Capital and TCV, according to an announcement on Monday.
With this round, Razorpay’s valuation has more than doubled to hit $7.5 billion in just eight months. Existing investors Tiger Global, Sequoia Capital India, GIC and Y Combinator also joined the latest round.
Razorpay was valued at $3 billion in April this year when it raised its $160-million Series E round led by Singapore wealth fund GIC. It subsequently raised an undisclosed sum from Salesforce Ventures in funding that valued the startup at a little over $3 billion.
Incidentally, Razorpay’s valuation in April 2021 had trebled to $3 billion in less than six months. The company had hit the valuation of over $1 billion after raising $100 million in its Series D round co-anchored by GIC and Sequoia Capital India in October 2020.
Razorpay has raised $741.6 million in external funding to date, per Crunchbase data.
Founded in 2014 by IIT Roorkee graduates Shashank Kumar and Harshil Mathur, Razorpay helps small businesses and large enterprises modernise their financial infrastructure by providing intelligent automated payment and business banking solutions to manage their money flow end-to-end.
The proceeds from the latest round will be deployed to further scale RazorpayX, its neo-banking platform that powers 25,000 Indian businesses, the statement said.
Razorpay is also looking at foraying into SE Asia, leveraging its learnings from the Indian market. Furthermore, it will look at making acquisitions in the B2B SaaS space, per the statement.
Razorpay has reportedly been looking to expand its footprint to the Philippines, Vietnam, Indonesia and Malaysia, and offer its core payment gateway service in these markets.
The company had earlier said it was on the lookout for B2B financial SaaS startups operating in SME credit, accounting and taxation, accounts receivable, and expense management. Razorpay acquired two companies in 2019 — Opfin, a payroll and HR Management software company, and Thirdwatch, an AI-driven company specialising in big data and machine learning for real-time fraud prevention.
In 2021, Razorpay acquired an AI-based risk analysis platform, TERA Finlabs, marking its third acquisition since inception.