Razorpay, a Bangalore-based fintech company that has experienced significant expansion in recent years, has achieved unicorn status following a new funding round of $100 million, the payment processing company announced on Monday.

This latest funding, a Series D round, was jointly led by GIC, the sovereign wealth fund of Singapore, and Sequoia India, according to the six-year-old Indian company. The round establishes the company’s valuation at “just over $1 billion,” as stated by co-founder and CEO Harshil Mathur in a conversation with TechCrunch.

The investment round also saw participation from current investors including Ribbit Capital, Tiger Global, Y Combinator, and Matrix Partners, bringing Razorpay’s total funding to $206.5 million.

Razorpay facilitates online money acceptance, processing, and disbursement for both small businesses and larger enterprises. In recent times, the company has broadened its services to include business loans and the launch of a neo-banking platform offering corporate credit cards, among other products.

Harshil Mathur and Shashank Kumar (featured above) first connected at IIT Roorkee and founded Razorpay in 2014. They identified a need for a streamlined payments processing solution after observing the difficulties young startups faced when attempting to accept online payments less than a decade ago. At that time, India had limited payment processing options, and startups were required to submit extensive documentation.

The initial Razorpay team, consisting of approximately 11 individuals, shared a single residence while the co-founders engaged with over 100 bankers in an effort to secure partnerships. These discussions were protracted and often stalled, leading the co-founders to repeatedly explain the same obstacles to potential investors, as they recalled in a prior interview.

The situation has dramatically improved for Razorpay. Mathur stated that it has become the leading payments provider for businesses in India. Razorpay, a competitor to PayU from Prosus Ventures, supports a diverse range of payment methods, including credit cards, debit cards, mobile wallets, and UPI.

“Razorpay has proven itself as a prominent leader, distinguished by its dedication to customer satisfaction and innovative product development,” commented Choo Yong Cheen, Chief Investment Officer for Private Equity at GIC, in a press release. “GIC has a strong history of collaborating with prominent fintech companies worldwide and is pleased to support Razorpay as it transforms the payments and banking sectors.”

Razorpay’s clientele includes prominent companies such as Oyo, a budget lodging platform; Cred, a fintech company; Facebook; Flipkart, an e-commerce business; Zomato and Swiggy, leading food delivery services; Byju’s, an online learning platform; Zilingo, a supply chain platform; Yatra and Goibibo, travel ticketing companies; and Airtel, a telecommunications provider.

The company anticipates processing approximately $25 billion in transactions – a fivefold increase from the previous year – for nearly 10 million customers this year, according to Mathur.

He credited a portion of this growth to the coronavirus pandemic, which he noted accelerated digital adoption across numerous businesses.

Regarding its neo-banking and capital initiatives, Mathur indicated that RazorpayX and Razorpay Capital are projected to contribute around 35% of the company’s revenue by the end of March next year.

Mathur explained that the company’s core payment processing service remains its fastest-growing segment and requires minimal additional capital for expansion. Therefore, the newly acquired funds will be used to enhance its neo-banking offerings, incorporating features such as vendor payments, expense management, and tax administration.

With a goal of serving over 50 million businesses by 2025, the company may also consider acquiring other companies to explore opportunities for inorganic growth within the neo-banking space, Mathur added.

“We will continue to significantly contribute to the industry’s progress, encourage adoption in underserved markets, and promote new approaches and innovative thinking for the industry to emulate. This investment aligns perfectly with our growth strategy,” he stated.

Despite the coronavirus pandemic causing a slowdown in investment activity in India, approximately six startups in the country, including Unacademy, an online learning platform, and Pine Labs, have attained unicorn status.