Razorpay, the startup which operated under the online payments domain is reportedly in advanced talks with Sequoia Capital and others to raise $75-100 million(525-700 crore). Sequoia is expected to close in on the deal which could soar the valuation of the Bengaluru headquartered startup to $425-450 million.
Razorpay is backed by investors including Silicon Valley’s leading accelerator Y Combinator, Matrix Partners India, Tiger Global as well as Apoletto Managers, the investment branch of DST Global.
Razorpay had also acquired $20 million from the YC Continuity Fund as per industry sources. Sequoia boasts of a host of investments in the payments domain including platforms such as Mobikwik and Pine Labs. The investment major also owns stakes in Citrus.
If the deal materialises, the total value of funds secured by Razorpay will exceed $100 million. As per sources aware of the deal, the new funds will be utilized for expanding the new business of the company termed as Razorpay 2.0. Incepted as a payments gateway platform, Razorpay has forayed into multiple businesses aims to offer a suite of services to its users.
“The lending business now has close to 600 merchants while banking solutions business has also scaled up to around 700 merchants since the launch in December,” said a source aware of the talks.