Scoop: Razorpay looks at $2 billion valuation in new funding round

Mumbai: Digital payments startup Razorpay is in talks with its existing investor GIC and others to raise $150-200 million in a financing round that could see its valuation nearly double to $2 billion in less than six months, three people privy to the matter told ET. This would make it one of the fastest increases in valuation for an Indian startup, signalling the rising investor interest in digital payments and the overall financial services sector, which is increasingly moving online.

“There could be other new investors also looking to come in, but Razorpay’s existing investors such as Tiger Global and Sequoia Capital will likely participate along with GIC,” said a person privy to the deal details.

The sharp increase in valuation is due in large part to the uptick in digital transactions in recent months as the Covid-19 crisis has pushed businesses—small and large— adopt online payments as an option, industry experts said.