Bangalore based Razorpay has joined the unicorn club after it raised $100 million in a new financing round. The payment processing firm which an Indian startup has been demonstrating accelerated growth over the years and now has finally shown its true worth by joining the most coveted unicorn club.
The startup accepts, processes, and disburses money online for small businesses and enterprises. Razorpay has expanded its offerings to provide loans to businesses and has also launched a neo-banking platform to issue corporate credit cards.
However, the company didn’t have a smooth start as startups in India didn’t use to get much attention when Razorpay was first founded. According to sources, the early team of Razorpay consisted of only 11 people and they had to rush to over 100 bankers in order to convince them to work for them. They were at most of the time left helpless and failed to achieve the necessary outcome.
Now, however, the company has become the largest payment provider for business in India, as per the reports.
Choo Yong Cheen, Chief Investment Officer for Private Equity at GIC stated that “Razorpay has established itself as a clear leader, with its strong focus on customer experience and product innovation. GIC has a long track record of partnering with leading fintech companies globally and is delighted to partner with Razorpay in its journey to transform payments and banking.”
The startup’s clients include budget lodging decacorn Oyo, fintech firm Cred, even Facebook, Walmart owned Flipkart. It also tops food delivery startups like Zomato and Swiggy. Along with online learning platform Byju, supply chain platform Zilingo, also travel ticketing firms Yatra and Goibibo, and the telecom giant Airtel.
The company officials expect its RazorpayX and Razorpay Capital to account for about 35% of the company’s revenue by the end of March next year.
Mathur, the company’s co-founder, said, “We will continue to make an impactful contribution to the growth of the industry, aid adoption in the under-served markets and drive new practices and new thinking for the industry to follow. And this investment fits perfectly with our growth strategy”.
The current pandemic has slowed down our economy in a major way and has shifted the consumer spending curve in a big amount. But Razorpay attaining the unicorn status is large because the pandemic has increased the rate at which users perform digital transactions.
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