Razorpay looks to raise up to $250 mn, eyes $4 bn valuation

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Fintech unicorn Razorpay is in talks with huge world funds to increase $200-250 million at a valuation of close to $4 billion, two individuals acquainted with the progress mentioned.

The payments platform is in talks with hedge cash these kinds of as Tiger Worldwide Administration, Coatue Administration, D1 Cash Companions and other technologies-concentrated cash, together with DST Worldwide, Dragoneer Expense Team and Falcon Edge Capital, the individuals reported on affliction of anonymity.

The corporation counts Sequoia Funds, Matrix Companions and Rabbit Money among its backers. It wasn’t clear irrespective of whether any of the existing investors would offer their stakes in the impending transaction.

Razorpay elevated $160 million this calendar year at a valuation of about $3 billion, a move aimed at scaling up its enterprise banking device.

E-mail queries sent to Razorpay and investors did not elicit any response till push time. Tiger World wide declined to comment.

The fundraising activity for payment startups has acquired tempo soon after the PayU-BillDesk transaction, claimed 1 of the people today cited previously mentioned. Shopper net group Prosus’s payment arm PayU agreed to obtain Indian payment gateway support service provider BillDesk for $4.7 billion. The deal, declared on Tuesday, marks the biggest exit by an Indian startup by means of an acquisition.

“Players this kind of as Razorpay are hunting at acquisitions on the expertise pooling side, aside from targeting a bit matured sites in the B2B SaaS (application as a assistance) space,” the second individual mentioned.

Razorpay, established up in 2013 by Indian Institute of Technological innovation (IIT)-Roorkee alumni Shashank Kumar and Harshil Mathur, has lifted $366.5 million in investments to day, which include $100 million in a Sequence D funding in 2020.

Revenue grew 40-45% month-on-month all through 2020 and the system processed $40 billion truly worth of transactions last year, Razorpay explained.

Razorpay’s customers include things like Fb, Bharti Airtel, Ola, Zomato, Swiggy, Cred, and ICICI Prudential. It competes with some heavily funded players these types of as IPO-certain Paytm, in addition to PayPal, Payoneer, and Stripe.

Investments in Indian fintech startups have observed a 25% maximize this 12 months, in accordance to a KPMG report. Some of the big transactions in the fintech phase have taken area this yr.



Categories: Venture Capital

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