Salesforce supports Indian payment startup Razorpay – TechCrunch
Six-year-old Bangalore-based fintech Razorpay, which was valued at $ 3 billion in a funding round in April this year, has courted another top investor: Salesforce Ventures.
Razorpay announced Monday that it had received a “strategic investment” from the venture capital arm of the American giant of the company. The investment will help the startup to “further strengthen its presence in the corporate banking space,” he said.
The two companies did not disclose the size of the investment, but the Sequoia Capital India-backed startup said the deal “will make a significant contribution to the industry and boost the adoption and financial growth of small businesses. underserved over the next twelve months “.
Razorpay accepts, processes, and remits money online for small businesses and businesses – essentially everything Stripe does in the US and several other developed markets. But the Indian startup’s offer goes much further: in recent years, Razorpay has launched a neo-banking platform to issue corporate credit cards, and it also offers companies working capital.
With global giant Stripe still absent from the Indian landscape, Razorpay became the clear market leader and began to expand into the South East Asian market.
“At Razorpay, we want to make further progress in 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 more broadly Salesforce 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 create an ecosystem for a hassle-free and easy-to-integrate payment and banking experience. We also hope to expand, create new products and provide this experience to companies in Southeast Asian countries as well. “
Monday’s deal is Salesforce Ventures second investment in the Indian startup ecosystem. The company led a $ 15 million Series C fundraising round at Hyderabad-headquartered Darwinbox earlier this year.
“The path to a ‘less cash’ economy has been accelerated with the pandemic. The rapid growth of digital payments over the past year has paved the way for 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 delighted to support Razorpay on their journey to revolutionize digital finance not only in India, but also globally,” added Bhattacharya, who joined the firm last year.
The Indian startup, which turned unicorn a year ago, said it has seen monthly growth of 40-45% in recent months. The startup is currently in the market for a new round of funding and is negotiating a significantly larger valuation increase over current value, according to a person familiar with the matter.
Dozens of corporate giants, including Google, Facebook and Microsoft, have started looking for strategic investments in the world’s second largest internet market. Microsoft has signed a strategic deal with Indian budget hotel chain Oyo, they confirmed this month.
India has produced a record 27 unicorns this year so far, up from 11 last year as many top global investors including Tiger Global, Falcon Edge Capital, Temasek, SoftBank Vision Fund 2 and Coatue Management , increase the pace of their investments. in the South Asian market. And the list continues to grow: a16z is at an advanced stage in supporting Indian crypto startup CoinSwitch Kuber, TechCrunch reported last week.