FinTech startup Razorpay is reportedly in talks with existing investor Singapore investment fund GIC to raise circa $150m to $200m in a new financing round.
If the funding goes through, its valuation might double to $2bn in less than six months after it gained unicorn status in October 2020, reported The Economic Times, citing sources familiar with the matter.
With GIC expected to be the primary investor, existing investors, namely Sequoia Capital and Tiger Global, will most likely participate alongside other new investors, the report said.
The new capital might be used to expand the payment platform and to strengthen technology for fraud analytics and security features.
The rapid scale-up of the FinTech firm is indeed triggered by consumer patterns shifting towards online payments after the escalation of digital transactions in India as a result of the ongoing pandemic.
According to sources cited by the publication, “the investor sentiment is favourable for FinTech firms as they can command strong valuations due to a massive push towards digital payments and financial services in India.”
Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay has raised a total of $206m in four investment rounds to date. Its valuation reached over $1bn after it raised $100m from GIC, Sequoia, Matrix Partners, Ribbit Capital, Tiger Global and Y-Combinator last year.
Razorpay also runs a neobank platform RazorpayX, which helps traders access credit from partner banks, run current accounts and automate financial tasks.
Razorpay was the fifth FinTech firm to achieve unicorn status in India after online payment gateway BillDesk, Flipkart-owned PhonePe and insurtech startup PolicyBazaar.
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