Payments gateway Razorpay has raised $100 million in its latest funding round led by Singapore’s sovereign wealth fund GIC and existing investor Sequoia India, joining the exclusive club of startups valued at more than a billion dollars.
Existing investors Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners also participated in the Series D round. It has raised $206.5 million since inception in 2014, including $75 million in the previous round of fundraising last year.
Razorpay is the fifth Indian fintech firm to achieve ‘unicorn’ status after online payment gateway BillDesk, Flipkart-owned PhonePe and insurtech startup PolicyBazaar, which were all valued at over $1 billion in 2018.
Paytm entered the unicorn club back in 2014 and is the most valuable startup in the country at $16 billion.
Bengaluru-based Razorpay, with 1,300 employees, will be using the funds to launch products for its neo-banking business Razorpay X and lending business Razorpay Capital, seeking to double their growth in the coming year.
It will also hire 500 people across functions of growth, product and technology.
“GIC is a good long-term investor to have. Their knowledge about public markets and investment in firms like Bajaj Finserv Ltd and Bandhan Bank Ltd will help us in our journey to go public. With this fundraise, we will focus on going deeper into the Indian market and broaden our product portfolio to grow our business and achieve profitability,”