Razorpay becomes India’s latest FinTech unicorn
Indian startup Razorpay has become the country’s latest fintech unicorn after securing $100m in Series D funding.
GIC, Singapore’s sovereign wealth fund, co-led the round of financing as a major new investor alongside Sequoia. Existing investors Ribbit Capital, Tiger Global, Y Combinator and Matrix Partners also participated, bringing Razorpay’s total raised funds above $206m and tipping the startup’s valuation above the golden $1bn mark.
Razorpay is the sixth Indian startup this year to exceed $1bn in valuation, and the country’s fifth ever fintech unicorn.
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay’s payment platform helps connect the dots between India’s many payment instruments, making its simple for SMEs to accept, process and disburse money. It says it has served millions of businesses in its first six years, including multinationals like Facebook, Google and Wikipedia, making it one of India’s largest payments providers for business.
What next for Razorpay?
Beyond payment processing, co-founder Shashank Kumar says Razorpay has ambitions to diversify its offering and become the fintech partner of choice for India’s business innovators.
“This funding is just a pit stop to refuel while we strengthen our commitment of simplifying the entire money flow so that our partner businesses can focus more on disrupting the Indian economy with their new ideas,” Kumar said in a recent company blog post.
The company already branched out into neobanking with RazorpayX in late 2018, opening its services up to a broader corporate customer base and serving more than 10,000 businesses in its first 12 months.
Recent developments and demand caused by the COVID-19 pandemic also saw Razorpay launch Cash Advance, a line-of-credit product aimed at SMEs struggling with cash flow. These two products will benefit most from the new financing, with aims to invest heavily and double their growth over the next 12 months.
Nymbus enters strategic partnership with Plaid
Nymbus, a leading provider of banking technology solutions, has partnered with Plaid, a data network powering the digital financial ecosystem, to more instantly authenticate and fund customer bank accounts for financial institutions.
This new integration will allow Nymbus bank and credit union clients to securely onboard new users in a matter of seconds, which in turn translates to more active and engaged banking experiences. Plaid’s data network enables consumers to connect their financial accounts at over 11,000 institutions globally to more than 5,000 digital finance apps, including leading payments, investing, and budgeting tools.
What are the benefits of the integration?
Benefits of the Nymbus and Plaid integration for financial institution customers include:
- Improve user identity verification and reduce fraud.
- Instantly authenticate and link members’ bank accounts.
- Streamline ACH transfers between any bank or credit union in the US.
- Access and analyse comprehensive transaction data.
- Validate real-time account balances to protect against overdraft and enable account pre-funding.
“As more consumers than ever before rely on digital finances for their everyday lives, financial institutions need to meet their customers where they are while supporting safe and reliable money management experiences,” said Sarah Howell, Chief Alliance Officer at Nymbus. “Our expanding network of partners are important contributors to Nymbus’ combined portfolio of the technology, people and process available to quickly innovate with new routes to market and revenue streams.”
Continuous growth and expanding partnerships
Founded in 2015, Nymbus has continued to grow. Most recently the company has closed a new round of financing led by the Curql Fund. The US$5 million investment will be used towards Nymbus CUSO and accelerate a shared commitment to breakthrough technology for ensuring continued growth and stability for the credit union community.
Nymbus CUSO was founded in March 2021 to help break through barriers to growth, and its mission is to connect credit unions with trusted fintech offerings that both simplify technology delivery and enable new digital revenue opportunities.
Last year Plaid set a goal to move 75% of its traffic to APIs by the close of 2021, calling it “one of our top priorities as the industry moves full-steam ahead toward a fully digital financial system.”
Recently it has announced an open finance partnership with Capital One, a digital finance innovator, and the successful completion of its migration to the Capital One API. They have also completed or have in-motion data access agreements with major US financial institutions, including U.S. Bank, JPMorgan Chase, Wells Fargo, and others.