Razorpay, a six-year-old fintech from Bangalore, who was valued at $ 3 billion in a funding round in April This year, he’s courted another high-profile investor: Salesforce Ventures.
Razorpay said Monday that it has received a “strategic investment” from the US business giant’s venture arm. The investment will help the startup “further strengthen its presence in the corporate banking space,” he said.
The two firms did not disclose the size of the investment, but the Sequoia Capital India-backed startup said the deal will “make an impactful contribution to the industry and drive adoption and financial growth for underserved small businesses in the next twelve months.” .
Razorpay accepts, processes and disburses money online for small businesses and businesses – basically everything Stripe does in the US and several other developed markets. But the Indian startup’s offering goes much further: in recent years, Razorpay has launched a neo-banking platform to issue corporate credit cards (more at the end of the article) and also offers working capital to companies.
With the global giant Stripe still nowhere on the Indian landscape, Razorpay has grown to become the market leader.
“At Razorpay, we want to further advance the idea of investing in India’s digital future and building a smart payments and banking infrastructure for the new world. We are delighted to partner with Salesforce Ventures and Salesforce more broadly in India, ”said Harshil Mathur, co-founder and CEO of the fintech startup.
“I am confident that this investment, along with the support of our existing investors, will help build an ecosystem for a seamless and easy-to-integrate banking and payments experience. We also look forward to expanding, creating new products and offering this experience to companies in Southeast Asian countries as well. “
Monday’s deal is Salesforce Ventures’ second investment in India. Signature led a $ 15 million Series C Funding round at Hyderabad-based Darwinbox earlier this year.
“The journey to a ‘less monetary’ economy has accelerated with the pandemic. The rapid growth of digital payments over the last year has opened the doors to technological innovation and Razorpay has become the company of choice for many e-commerce businesses, ”said Arundhati Bhattacharya, President and CEO of Salesforce India, in a statement.
“We are excited to support Razorpay on its journey to revolutionize digital finance not only in India, but also globally,” he added.
The Indian startup, which became a unicorn a year ago, said it has witnessed 40-45% monthly growth in recent months. The startup is currently on the market to raise a new round of funding and is negotiating a considerably higher valuation increase over current value, according to a person familiar with the matter.