YC-backed fintech unicorn banks $375m in series F money

India-based fintech unicorn Razorpay has raised around US$375 million in a series F funding round led by Lone Pine Capital, Alkeon Capital, and TCV.

The new round brings the startup’s valuation to US$7.5 billion, more than doubling from US$3 billion in April when it had raised US$160 million. It has raised a total of US$740 million to date.

Razorpay team / Image credit: Razorpay

Razorpay is a full-stack financial services company that provides Indian businesses with its solutions built to address the entire length and breadth of the payment and banking journey. The company serves over 8 million businesses across the country, including Facebook, Ola, Zomato, Swiggy, and Cred, among others. It was the second India-based company to be a part of the accelerator Y Combinator.

The fintech firm said it has achieved US$60 billion in total payment volume (TPV) as of early December 2021 and targets US$90 billion TPV by the end of 2022. It also said that it has registered over 300% year-on-year growth for the second year in a row. Razorpay further targets to reach 10 million businesses by next year.

The fresh funds will be used to further scale up its business banking suite, RazorpayX, and offer new banking solutions in 2022. It also plans to invest in new acquisitions next year and expand its presence across the globe, starting with Southeast Asia.

In July, the company acquired UK-based digital lender Gain Credit for an undisclosed sum, its third acquisition to date.

Razorpay also plans to hire over 600 employees to fuel its growth plans in India and overseas.

The company was founded in 2014 by Shashank Kumar and Harshil Mathur, who are both alumni of  Indian Institute of Technology Roorkee.

Other existing investors that participated in the round include:

• Tiger Global
• Sequoia Capital India
• GIC
• Y Combinator