Payments solution company Razorpay has received $75 million from venture capital firms Sequoia India and Ribbit Capital, it said in an announcement today. The company's Series-C funding also saw participation from Tiger Global and Y Combinator.
Razorpay plans to use a significant share of these funds to develop new technologies and scale up its recently-expanded product suite, Razorpay X and Razorpay Capital. According to the company, it expects its neo-banking platform and lending arm to contribute to 40 percent of its revenue by next year.
Apart from that, Razorpay plans to increase its headcount to 700 in 2020. It also plans to hire senior members to head different product verticals in the company.
Harshil Mathur, CEO and co-founder of Razorpay said, "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."
Mathur further added that more than 350,000 disruptors are partnered with them and that the funding has come at a time when fintech and banking is evolving beyond payments and lending. "We would like to change the way businesses access banking products," he mentioned.
Ishaan Mittal, Principal, Sequoia Capital India Advisors said, "Their strength lies in their technology, people and organisational culture and we are enthusiastic about partnering with them as they transform the payments ecosystem in India."
In a statement, Micky Malka, Managing Partner, Ribbit Capital added, "The digital payments market in India is massive. We are excited to be part of a company that is building trust between the consumers and the retailers to enable payments to flow faster and more efficiently in India. We expect that with Razorpay's technology and support, the Indian consumer and the business owners will benefit from a more comprehensive and thorough experience."
Razorpay raised a total of $31.5 million in Series A in 2016 and Series B in 2018 funding rounds, along with 33 angel investors and a strategic investment by MasterCard.
Established in 2014, Razorpay now powers digital payments for businesses like IRCTC, Airtel, BookMyShow, Zomato, Swiggy, Yatra and Zerodha and more. Razorpay plans to increase this merchant count to 450,000 by 2020. They grew by 500 per cent in the last one year and expects a 5x growth in its revenue by the end of the next fiscal year.