Razorpay, a Bengaluru-based payment service provider that helps businesses automate collections through its gateway service, while helping small businesses manage money flow, said it has raised $160 million from Sequoia India and Singapore-based GIC in a funding round, according to ET report.
Existing investors Ribbit Capital and Matrix Partners also participated in the funding round.
“The startup will use the newly infused capital to expand in South East Asian markets such as Malaysia, Indonesia and Singapore,” Chief Executive Officer Harshil Mathur said.
“The company is also in the process of acquiring an enterprise Software-as-a-Service (SaaS) firm for merchant management and will hire about 600 people both in India and overseas to grow its neo-banking business, which in recent months has seen considerable traction,” said Mathur.
In addition, the company said it provides payment solutions to over five million small merchants. While its neo-banking platform, Razorpay X, which helps merchants run current accounts and access credit from partner banks, processes loans worth Rs 700-800 crore every month. The company also offers corporate credit cards in tie-ups with licensed lenders to startups in need of working capital.
Commenting on the valuation boost, Mathur said that there is money aplenty for fintech startups that are managing their unit-economics well, but investors are steering clear of early-stage startups with riskier business models.
Unlike peers Cred and Pine Labs, which also recently entered the unicorn club, Mathur said that Razorpay has no plans yet to apply for a lending licence. “We want to focus on our strengths which is a tech and platform solution for enterprises looking to solve their banking needs,” he said.
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