The startup disclosed that the contribution from the Venture establishment will help the company augment the financial growth in the small business space in the next twelve months.
Bangalore-based fintech unicorn, Razorpay has roped in Salesforce Venture to receive a “strategic investment” from the American software company which will fuel its operations and overall presence in the banking segment. However, the value of the investment is yet to be unveiled.
The payments platform disclosed that the contribution from the Venture establishment will help the company augment the financial growth in the small business space in the next twelve months.
Razorpay serves small businesses and enterprises by providing services including accepting and disbursing money for various transactions. In addition, it also owns a neobanking platform with the view of issuing corporate credit cards. The company also serves the businesses by offering them business operating capital.
Expressing views on the latest deal with Salesforce, CEO and Co-founder of the payments platform, Harshil Mathur said, “At Razorpay, we want to make further strides on the idea of investing in India’s digital future and building an intelligent payment and banking infrastructure for the new world. We are delighted to associate with Salesforce Ventures and Salesforce more broadly in India.”
The CEO further shared how this contribution from the software making company will empower the company’s operations in constructing a trouble-free and “easy-to-integrate” space for payments and a seamless banking experience.
The company’s future plans also include introducing new products in the platform and diversify it to serve in the South East Asian region too.
It is not the first time Salesforce has invested in the Indian startup space. The American Venture company has invested earlier this year in Hyderabad-based company, Darwinbox by contributing over $15 million in a Series round of funding of the startup.
Arundhati Bhattacharya, CEO and Chairperson of Salesforce India, shared how the pandemic has fueled the digital banking business and invited numerous opportunities for businesses. “The journey towards a ‘less-cash economy has been accelerated with the pandemic. The rapid growth in digital payments over the last year has opened doors for technology innovation and Razorpay has been emerging as the company of choice for a lot of e-commerce businesses.”
The Salesforce CEO further reveals the company’s plan to help and support the fintech startup with the view of enhancing the digital payments platform not just in the country’s territorial boundaries, but to reach further globally.
Established in the year 2013 by IIT (Indian Institute of Technology) Roorkee alumni Shashank Kumar and Harshil Mathur, Razorpay raised around $366.5 million including over $100 million in a Series D funding in 2020. It reportedly processed about $40 billion worth of transactions last year. The platform raised over $160 million this year at a valuation of about $3 billion aiming at expanding its business banking platform.
The payments platform serves some well-known customers including Facebook, Bharti Airtel, Ola, Zomato, Swiggy, Cred, and ICICI Prudential. Its heavily-funded competitors include Paytm, PayPal, Stripe and Payoneer. According to a KPMG report, the investment contributions in the Indian fintech startup ecosystem has observed a 25% increase this year.