Indian mobile wallet firm Razorpay is talking to large global funds about raising $200 million to $250 million at a $4 billion valuation, two people familiar with the talks said in a Mint report.
Razorpay is talking to hedge funds including Tiger Global Management, Coatue Management, D1 Capital Partners and technology-focused funds DST Global, Dragoneer Investment Group and Falcon Edge Capital, among others, the sources told Mint anonymously.
Sequoia Capital, Matrix Partners and Rabbit Capital have already invested in Razorpay. It’s unclear if those companies or other existing investors would give up their ownership stakes as part of the latest fundraising round.
Earlier this year, Razorpay raised $160 million at a $3 billion valuation as part of a plan to bulk up its business banking unit.
“Players such as Razorpay are looking at acquisitions on the talent pooling side, besides targeting a bit matured places in the B2B SaaS (software as a service) space,” one of the sources told Mint.
Razorpay has raised $366.5 million in investments since being launched in 2013, including $100 million in a Series D funding in 2020. Customers include Facebook, Bharti Airtel, Ola, Zomato, Swiggy, Cred and ICICI Prudential.
In July, Razorpay announced it had acquired Bengaluru-based artificial intelligence (AI)-based risk tech SaaS startup TERA Finlabs, marking the company’s third acquisition in the B2B financing realm since the launch of Razorpay Capital in 2019.
TERA’s AI-based risk tech SaaS platform is designed to expand traditional consumer lending models with customized credit products to make consumer loans affordable for customers and profitable for lenders. It allows Razorpay to expand its product range for SMBs borrowers hit hard by the COVID-19 pandemic.
Razorpay launched Cash Advance and Credit solutions with instant settlements during the lockdown to help small businesses overcome cash flow problems.