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.
Payment startup Mollie raises US$800m at a $6.5bn valuation
Mollie, one of the fastest-growing payment processors within Europe, today announced it has raised US$800m in a Series C funding round, now valuing the company at $6.5bn. The valuation, based on Dealroom data, makes Mollie the third most valuable privately-held European fintech behind Klarna and Checkout.com.
Blackstone Growth (BXG), Blackstone’s growth equity investing business, led the investment and included participation from EQT Growth, General Atlantic, HMI Capital and Alkeon Capital. TCV who led the Series B investment in September 2020 also participated in the funding round.
According to the company, the funding will fuel Mollie’s international expansion, team scaling, and continued investment in product and engineering.
“There’s something very special about Mollie. In the three months since I joined the team we’ve achieved so much: making preparations for a full launch in the UK, driving 600% growth in Germany and hiring an impressive set of team members and executives,” said Shane Happach, CEO, Mollie. “Over the past months, Mollie has been receiving a remarkable amount of interest from some of the world’s foremost fintech investors. In bringing on BXG, we believe we have an investor who can help Mollie in our next phase of growth. The involvement of our new group of investors demonstrates confidence in Mollie’s growth, strategy and product set.”
The Amsterdam-based business was launched in 2004, and is one of the largest PSPs in Europe. Today, it serves more than 120,000 monthly active merchants of all sizes across the continent. During 2020, Mollie processed more than 10 billion Euros in transactions and is on track to handle more than 20 billion Euros during 2021.
“Mollie is one of Europe’s most exciting high-growth businesses and is at the forefront of enabling next-generation payments for online SMEs across Europe. We are excited to partner with Mollie’s fantastic team and look forward to leveraging Blackstone’s capital, expertise and global network to unlock the company’s next phase of growth,” said Paul Morrissey, who leads European investing for Blackstone Growth. “This investment underlines Blackstone’s confidence in Europe as a place for high-growth companies to thrive.”
In Europe, FinTech app usage grew by 72% directly after the pandemic outbreak, while the top seven digital banks in the US grew their cumulative user base by 39% throughout the year. Competition in payments has grown over the past few years with fintech players like Stripe, Square and Netherlands-based Adyen all competing for a bigger share of the market.
Unlike its American rivals, Mollie says it mainly focuses on transactions with small businesses in Europe. Shane Happach, CEO of Mollie said: “A lot of the bigger players in online payments come out of the US, like PayPal,”. Adding that even Visa and Mastercard are US companies.
“A lot of investors don’t have a bet on Europe,” Happach said. “Mollie’s one of those unique assets that offers exposure.