Razorpay, the India-based online payment technology provider backed by internet company GMO and payment services firm Mastercard, has raised Rs 5.3bn ($75.4m) in a series C round co-led by venture capital firm Ribbit Capital.
Fellow VC firm Sequoia Capital co-led the round, which was also backed by hedge fund sponsor Tiger Global Management and accelerator operator Y Combinator’s Continuity Fund. Sources familiar with the transaction told the Economic Times it valued Razorpay at about $450m.
Founded in 2014, Razorpay runs an online platform that allows India-based businesses to process payments from a range of sources including credit and debit cards, online banking services and e-wallets. It can set up invoices, schedule payments and process international denominations including the US dollar and Chinese renminbi.
The company intends to introduce two new product lines – Razorpay X and Razorpay Credit – which will offer cash flow management and lending services respectively. The funding will help Razorpay strengthen both products, while also supporting the expansion of its headcount to 700 by the end of the current fiscal year.
Razorpay also plans to use series C cash to fire up an acquisition campaign over the coming months. It has now raised $107m in funding to date, according to ET.
GMO’s corporate venturing unit, GMO Venture Partners, joined Matrix Partners and Y Combinator for Razorpay’s $2.5m seed round in 2015, the week before Tiger Global led the company’s $9m series A round, investing with Matrix Partners.
Mastercard then supplied Razorpay with an undisclosed amount of funding in 2016, through a deal that gave Razorpay direct access to Mastercard’s authentication gateway. Razorpay closed a $20m series B round in January 2018 that was co-led by Tiger Global and Y Combinator’s Continuity Fund.
Matrix Partners also participated in the series B round, which was reported by TechCrunch to have taken place at a $100m valuation.