Six-year-old Bangalore-based fintech Razorpay, which was valued at $3 billion in a financing round in April this 12 months, has courted another high-profile investor: Salesforce Ventures.
Razorpay mentioned on Monday it has obtained a “strategic funding” from the enterprise arm of the American enterprise big. The funding will assist the startup “additional strengthen its presence within the enterprise banking area,” it mentioned.
The 2 companies didn’t disclose the scale of the funding, however Sequoia Capital India-backed startup mentioned the deal will “make an impactful contribution to the business and drive adoption and monetary progress for underserved small companies within the subsequent twelve months.”
Razorpay accepts, processes and disburses cash on-line for small companies and enterprises — primarily every little thing Stripe does within the U.S. and a number of other different developed markets. However the Indian startup’s providing goes a lot additional than that: in recent times, Razorpay has launched a neobanking platform to subject company bank cards, and it additionally provides companies working capital.
With the worldwide big Stripe nonetheless nowhere within the Indian image, Razorpay has grown to grow to be the clear market chief.
“At Razorpay, we need to make additional strides on the thought of investing in India’s digital future and constructing an clever cost and banking infrastructure for the new- world. We’re delighted to affiliate with Salesforce Ventures and Salesforce extra broadly in India,” mentioned Harshil Mathur, co-founder and chief government of the fintech startup.
“I’m sure that this funding, together with help from our current traders will assist construct an ecosystem for a hassle-free, easy-to-integrate funds and banking expertise. We additionally hope to broaden, construct new merchandise and ship this expertise to companies in South East Asian international locations too.”
Monday’s deal is Salesforce Ventures’ second funding within the Indian startup ecosystem. The agency led a $15 million Series C financing spherical in Hyderabad-headquartered Darwinbox earlier this 12 months.
“The journey in the direction of a ‘less-cash’ economic system has been accelerated with the pandemic. The speedy progress in digital funds over the past 12 months has opened doorways for expertise innovation and Razorpay has been rising as the corporate of alternative for lots of e-commerce companies,” mentioned Arundhati Bhattacharya, chairperson and chief government of Salesforce India, in an announcement.
“We’re excited to help Razorpay of their journey to revolutionize digital finance not solely in India, however globally as properly,” added Bhattacharya, who joined the firm last year.
The Indian startup, which grew to become a unicorn a 12 months in the past, mentioned it has witnessed a 40-45% month-on-month progress in latest months. The startup is at the moment available in the market to boost a brand new financing spherical and is negotiating a significantly bigger valuation bump over the present worth, in keeping with an individual aware of the matter.