GIC, Sequoia In Razorpay’s $100 Million Round; Valuation May Hit $1 Billion

Payments company Razorpay has closed a $100 million financing round co-led by GIC, the sovereign wealth fund of Singapore, and existing investor Sequoia Capital, in the process topping $1 billion in valuation, and becoming the first Indian neo-bank to hit that benchmark. “India has made significant strides in establishing a digital payments ecosystem and 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,” Choo Yong Cheen, chief investment officer for private equity at GIC, said in a statement. “India’s digital ecosystem is seeing unprecedented growth with online shoppers expected to cross 350 million by 2025. This trend of digitisation is penetrating India across social strata and geography and Razorpay is playing a pivotal role in this transformation by enabling millions of merchants to accept digital payments in a frictionless and efficient manner. They have expanded the breadth of products and solutions rapidly across payments and banking and are becoming a platform for all financial technology needs of their customers,” Ishaan Mittal, principal, Sequoia Capital India, said. According to him, on an annualised basis, Razorpay is processing payment volumes of more than $400 billion, with RazorpayX and Razorpay Capital contributing 15%-20% to its overall topline.