The “strategic” investment will also help Razorpay to expand its services to Southeast Asian markets. Harshil Mathur, Chief Executive and Co-Founder of Bengaluru-based
The startup said in a statement.
“I am sure that this investment, along with the support of our existing investors, will help create an ecosystem for a hassle-free, easy-to-integrate payments and banking experience. We will continue to expand, build new products and continue to grow in the South. Hope to take this experience to businesses in East Asian countries too,” said Mathur.
Chief Executive Officer of Salesforce India Arundhati BhattacharyaThe company, who was previously the chairman of State Bank of India, is expected to play a role in advising Razorpay on its next phase of growth.
“The journey towards a less-cash economy has accelerated with the (Covid-19) pandemic. Bhattacharya, President and CEO, Salesforce India, said, “The rapid growth in digital payments over the past year has opened doors for technology innovation and RazorPay is emerging as the company of choice for many e-commerce businesses.
The investment comes at a time when India’s digital economy and fintech sector has seen accelerated growth due to disruptions related to Covid-19, with both customers and businesses alike opting for digital payment solutions.
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RazorPay said it has seen 40-45% month-on-month growth over the past six months, processing payments totaling $50 billion annually.
Meanwhile, its neo-banking platform RazorpayX saw a more than 400% increase in transaction volume.
“We are undergoing one of the biggest changes in the Indian financial industry, which is going to significantly impact the payments and banking experience now and for years to come,” Mathur said.
“At Razorpay, we look forward to taking further on the idea of investing in India’s digital future and building an intelligent payments and banking infrastructure for the new world,” he added.
Salesforce Ventures is the global investment arm of Salesforce founded by Marc Benioff and Parker Harris.
Since 2009, the firm has been building its investment portfolio around venture technology companies around the world. It has invested more than $3 billion in more than 400 companies including Auth0, Databricks, DocuSign, Guild Education, Snowflake, Snyk, Stripe, Tanium, Twilio, and Zoom. salesforce
The first investment in India was in Darwinbox.
Razorpay is one of the fastest growing digital payments firms in India.
In April, startup
Raises $160 million from Sequoia India and Singapore-based GIC in its Series E round, which tripled its valuation to $3 billion in less than six months.
Long-term investors Ribbit Capital and Matrix Partners also participated in the round.
The seven-year-old startup is also backed by Tiger Global and Y Combinator.
Razorpay joined the unicorn club in October 2020 – a startup with a valuation of $1 billion or more, when it became R.E.
Raised $100 million at a valuation of over $1 billion In a round co-led by Singapore’s sovereign wealth fund GIC and Sequoia Capital.
The company provides payment, lending and banking solutions for merchants and enterprises.
In an interview to ET earlier this year, Mathur had said that his
Aims to expand into Southeast Asian markets Like Malaysia, Indonesia and Singapore in the next 12-16 months.
IIT-Roorkee alumnus Mathur and fellow co-founder Shashank Kumar founded the firm in 2014.
Its neo-banking platform, RazorPayX, helps merchants operate current accounts and access credit from partner banks. The platform processes loans worth Rs 1,000 crore every month.
The fintech firm competes with BillDesk, CC Avenue, Paytm and PayU in the payment gateway business, and in the business of neo-banking with others such as Jupiter, Neo and Open.
In August, Razorpay’s old rival
BillDesk was acquired by Dutch-internet giant Prosus In a deal worth $4.7 billion.