Fintech unicorn Razorpay is in talks with large global funds to raise between $ 200 million and $ 250 million at a valuation of around $ 4 billion, said two people familiar with the development.
The payments platform is in talks with hedge funds such as Tiger Global Management, Coatue Management, D1 Capital Partners and other tech-focused funds, including DST Global, Dragoneer Investment Group and Falcon Edge Capital, the people said on condition of anonymity.
The company counts Sequoia Capital, Matrix Partners and Rabbit Capital among its sponsors. It was unclear whether any of the existing investors would sell their stakes in the next transaction.
Razorpay raised $ 160 million this year at a valuation of around $ 3 billion, a move aimed at expanding its commercial banking unit.
Email inquiries sent to Razorpay and investors did not get any response as of press time. Tiger Global declined to comment.
Fundraising activity for payment startups has picked up pace after the PayU-BillDesk transaction, one of the people quoted above said. The payments arm of consumer internet group Prosus, PayU, agreed to acquire Indian payment gateway service provider BillDesk for $ 4.7 billion. The deal, announced Tuesday, marks the largest exit for an Indian startup through an acquisition.
“Players like Razorpay are looking for acquisitions on the talent pool side, as well as targeting slightly mature places in the B2B SaaS (software as a service) space,” said the second person.
Razorpay, created in 2013 by Indian Institute of Technology (IIT) alumni Roorkee Shashank Kumar and Harshil Mathur, has raised $ 366.5 million in investments to date, including $ 100 million in a Series D funding in 2020.
Revenue grew 40-45% month-on-month throughout 2020, and the platform processed $ 40 billion worth of transactions last year, Razorpay said.
Razorpay’s clients include Facebook, Bharti Airtel, Ola, Zomato, Swiggy, Cred, and ICICI Prudential. Compete with some heavily funded players like Paytm, plus PayPal, Payoneer, and Stripe.
Investments in Indian fintech startups have seen a 25% increase this year, according to a KPMG report. Some of the big transactions in the fintech segment have taken place this year.
