Indian startup Razorpay raises $160 million in Series E funding with a total valuation of $3 billion

Razorpay , a six-year-old financial payments company based in Bengaluru , said it has raised $160 million in a Series E funding round that values ​​the Indian startup at $3 billion .

It is reported that the new round of financing was jointly led by existing investors Sequoia Capital India and Singapore's sovereign wealth fund GIC. Some other existing investors, including Ribbit Capital and Tiger Global, also participated in the new round of financing . As of now, the total amount of Razorpay's several financings has reached US$366.5 million.

Image source: Razorpay

Last October, the company raised $100 million in Series D funding at a valuation of over $1 billion, becoming India’s first Y Combinator-backed unicorn. Less than six months later , the Indian startup’s valuation has tripled and it is preparing to go public in Southeast Asia.

Razorpay provides online payment collection, processing and payment services for small businesses and enterprises , which is equivalent to the Indian version of Stripe. But the business of this Indian startup is much more than that.

Razorpay has emerged as a leader in the Indian market , where global giant Stripe remains a non-starter . The startup plans to replicate its success in India in Southeast Asia .

In India , more than 5 million businesses rely on Razorpay’s technology to process payments. Some of these clients include Facebook, telecom operator Airtel, ride-hailing firm Ola, food delivery startup Swiggy and fintech CRED.

Image source: Razorpay

As the new round of valuation increases allows the company to more confidently explore some M&A opportunities to accelerate growth , Hashir Mathur, co-founder and CEO of Razorpay , said: "We are one of the largest payment providers in the Indian ecosystem. We want to apply what we have learned in India to the Southeast Asian market. We hope to enter one or two Southeast Asian markets before the end of this fiscal year."

Razorpay ’s Series E round comes as other Indian startups are raising large sums of money at a faster pace and higher valuations as global investors double down on the prospects of the world’s second-largest internet market .

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