Razorpay, a fintech firm based in India, has raised $375 million in funding

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As one of India’s top financial behemoths demonstrates tremendous development and aggressively extends its product offerings, Razorpay’s market capitalization has more than tripled to $7.5 billion from $3 billion in April.

On Sunday evening, the Bangalore-based company announced that it had raised $375 million in its Series F fundraising round, making it India’s industry leader in payments processing. The current round was co-led by Lone Pine Funding, Alkeon Capital, and TCV, and it gives more capital to the company than all of its previous financings combined.

Razorpay, which has raised more than $740 million in the last seven years, said that existing investors Tiger Global, Sequoia Capital India, GIC, and Y Combinator had also participated in the latest round.

Razorpay is a service for small businesses and enterprises that accepts, processes, and distributes cash. It also has a neobanking platform that it uses to give businesses credit cards and operating capital. It also includes a global payment gateway that supports over 90 different currencies.

Some of its other services include assisting businesses with tax and compliance disbursements, generating payment links that can be shared via email or instant messaging services, subscription plans with automated recurring transactions on various payment modes, and automatic reconciliation of incoming transactions using virtual accounts and UPI IDs.

In recent years, the business has grown into a few Southeast Asian countries, offering services similar to those of Stripe, the global payments behemoth with little to no presence in India.

Razorpay claims to have over 8 million customers, including Facebook, Swiggy, Cred, the National Pension System, and Indian Oil, and promises to process $60 billion in transactions each year (up from $5 billion in 2019). Razorpay is used by 34 of the 42 unicorn companies in India this year.

Mathur and Shashank Kumar (co-founder of Razorpay) met in IIT Roorkee college. At the time, small businesses in India were having a lot of trouble collecting money online, and current payment processing companies weren’t focused on their needs.

With a valuation of $7.5 billion, Razorpay is now one of India’s most valuable fintech companies, up from little over $1 billion last year. It has not, however, been an easy road to this point.

To fuel its expansion in India and Southeast Asia, the company plans to expand its product portfolio and add more than 600 people.

“As the leading online payments player in the rapidly accelerating Indian digital payments market, Razorpay has continued to innovate and blaze new trails,” said Deepak Ravichandran, General Partner at Alkeon Capital, in a statement.

Razorpay, on the other hand, is not planning to launch a consumer-focused neobanking service, according to Mathur. The company recently launched a feature that remembers buyers’ information passwords, credit card numbers, and addresses during their initial transaction and prefills them when they transact with the same firm or any other that uses Razorpay to handle payments.

He noted that Razorpay is planning for an IPO as well, but that it won’t happen for at least two and a half years.

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