Payments solution provider Razorpay is reportedly in talks with the American venture capital firm Sequoia Capital and others to raise around $75-$100 million, a media report said.
Following the fundraiser, Razorpay will be valued at about $425-$450 million, according to a report in The Times of India. The Bengaluru-based company's existing investors Y Combinator, Tiger Global, Matrix Partners India and Apoletto Managers are likely to participate in the latest round of the fundraising, the newspaper said.
Last month, in a list published by CB Insights, a firm that tracks startups globally, Razorpay was listed in the top 50 private companies in the world that are on the path to a $1 billion valuation. Razorpay is one among five Indian companies that made it to this prestigious list.
Over the last 4 years, Razorpay has witnessed tremendous growth, both, in terms of market share and mind space, with customers and industry peers.
The company currently powers digital payments for more than 2,00,000 small and large businesses; over 60 percent of businesses use more than one product. They have clocked in a healthy growth rate of 15-20 percent month-on-month and are geared up to increase their merchant count to 3,00,000 by 2019.
In January 2018, Razorpay raised $20 million in funding led by Tiger Global and Y Combinator. The series B round also saw participation from Matrix Partners.
The company had raised $11.5 million in series A round from the same marquee investors along with 33 angel investors, and strategic investment by MasterCard in 2016.
In December 2018, the Company announced the launch of three new financial products and an exclusive community for Indian start-ups to thrive. Razorpay X (Business Banking), Razorpay Capital and Razorpay Flash Checkout along with The X Club are the new additions to the existing Razorpay 2.0 product suite of payment gateway, subscriptions, disbursements, B2B collections, payment links and GST enabled invoices.
The converged payments solution company expects a five-time growth in its revenue by the end of the next fiscal year.
Last year, while around 4 percent of the country's GDP was derived from digital products and services using digital technologies, it is estimated that within the next four years, nearly 60 percent of India's GDP will have a strong connection to the digital transformation trends.
Founded in December 2014, Razorpay began operations by offering online businesses in India the technology to accept all payment modes.
With PTI inputs
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Updated Date: Mar 04, 2019 12:44:16 IST