Razorpay is a Bangalore-headquartered fintech that accepts, processes and disburses money for small businesses and enterprises. It operates a neobanking platform offering credit cards and working capital, an international payments gateway supporting over 90 currencies, and tools for tax and compliance disbursements, payment links, subscriptions, and automatic reconciliation. The company processes $60 billion in transactions annually (up from $5 billion in 2019) and serves over 8 million businesses, including Facebook, Swiggy, Cred, National Pension System and Indian Oil; 34 of the 42 startups that became unicorns in India this year use Razorpay. Razorpay has raised over $740 million over the past seven years and recently closed a $375 million Series F that brought in more capital than all its previous financings combined. The startup is expanding into Southeast Asia and plans to hire over 600 people to fuel growth and product expansion. Management says it will focus on merchant-focused financial services rather than consumer-focused neobanking and is preparing to be IPO-ready but won’t pursue public markets for at least two and a half years. Razorpay is a six-year-old, Bangalore-based fintech that accepts, processes and disburses money online and has expanded into neobanking, corporate credit cards and working capital for businesses. The Sequoia Capital India-backed startup was valued at $3 billion in an April financing round and became a unicorn a year ago. Razorpay has reported strong recent growth, citing 40–45% month-on-month expansion in recent months. The company says it is expanding beyond India and intends to build new products and deliver its payments and banking experience to businesses in Southeast Asia. Management views the new strategic investment from Salesforce Ventures as a way to further strengthen its presence in the business banking space. Razorpay is currently in the market to raise a new financing round and is negotiating a considerably larger valuation bump, according to a person familiar with the matter. Razorpay is a Bangalore-based fintech that accepts, processes and disburses money online for small businesses and enterprises and has expanded into neobanking and lending. Its core payments product is the market leader in India and the company also offers Razorpay X (corporate cards and neobanking) and Razorpay Capital (short-term business loans). More than 5 million businesses use Razorpay; Razorpay X serves about 15,000 businesses and Razorpay Capital is disbursing roughly $80 million annually, with typical loan tickets of 0.8–1 million INR for three- to six-month terms. The payments business grew 40–50% month-on-month over the prior six months and the company aims to process over $50 billion in total payment volume by the end of 2021. Razorpay has over 600 open positions and plans to use the new capital to accelerate Southeast Asia expansion and to pursue M&A opportunities to speed growth. Razorpay’s core product is an online payments processing platform that accepts a wide range of payment options (cards, mobile wallets, UPI) and disburses funds for businesses. In recent years it has expanded into lending and launched a neo-banking platform that issues corporate credit cards and other banking services. The company expects to process about $25 billion in transactions for nearly 10 million customers this year, a fivefold increase from last year. Razorpay says its neo-banking and capital arms (RazorpayX and Razorpay Capital) are expected to account for ~35% of revenue by the end of March next year. Management plans to deploy new capital to expand neo-banking features such as vendor payments, expense and tax management, and may pursue acquisitions to grow that category. Razorpay positions itself as the largest payments provider for business in India and competes with players such as PayU. Razorpay operates a payment gateway and expanded payments suite (Razorpay X) and runs a lending arm (Razorpay Capital). The company serves 350,000 merchants and, as of June, supported digital payments in 100 currencies; notable clients include Airtel, IRCTC, Zomato, and Swiggy. Razorpay X is in beta with about 1,500 merchants signed up and is expected to go live in roughly three months. Razorpay Capital has an annual disbursal run-rate of $100 million. The company plans to double down on non-gateway business lines, aiming for those to contribute an estimated 40% of overall revenue over the next two years. Razorpay is also planning to ramp headcount from about 350 to roughly 700 by the end of the fiscal year and pursue potential acquisitions.

Total raised

$740M

Funding rounds

7

Latest round

Series F

Latest activity

Dec 2021