Bengaluru-based fintech leader Razorpay has announced an exciting collaboration with Peak XV Partners and Lightspeed Ventures to launch the Razorpay Venture Investment Program. This new initiative will invest up to $1 million annually in early-stage B2B startups spanning fintech, e-commerce, healthcare, retail, logistics, and more. With a goal of supporting 10-15 pre-seed to Series A companies each year, the program goes beyond funding by offering startups access to Razorpay’s robust tech infrastructure, extensive mentorship, and exclusive industry networking opportunities.
Expanding Opportunities for B2B Startups
Razorpay’s CEO and co-founder, Harshil Mathur, emphasized that this program aims to provide crucial resources to B2B founders, recognizing the particular challenges faced by startups in this sector. “Having built Razorpay from the ground up, I know firsthand the hurdles founders encounter. We want to offer more than just capital by extending our support network,” Mathur explained. To this end, the selected startups will benefit from Razorpay’s advanced API stack, sandbox environments, and technical integration support, essential tools for navigating the complex requirements of a B2B market.
A Collaborative Investment Approach
Peak XV and Lightspeed have joined Razorpay as equal investment partners, pooling resources to co-invest in selected startups. Vishnu Acharya, head of strategy and corporate development at Razorpay, will lead the initiative. The program’s structure underscores Razorpay’s commitment to fostering growth in India’s burgeoning startup ecosystem by facilitating collaboration between venture capital giants and emerging businesses. Each startup will also have access to Razorpay’s Rize community, which comprises more than 3,000 founders, offering mentorship and networking that can prove invaluable for early-stage growth.
Razorpay’s Evolution and Financial Success
Founded in 2014 by Shashank Kumar and Mathur, Razorpay has rapidly expanded from a pioneering payments platform to a comprehensive, omnichannel payments and banking solution provider. The company, backed by investors like GIC, Tiger Global, and Lightspeed, recently reported a staggering 365% profit increase, reaching INR 33.5 crore in FY24—up from INR 7.2 crore the previous year. With 83% of its revenue derived from payment aggregation, Razorpay’s operating revenue saw a 9% year-over-year growth, reaching INR 2,475 crore.
This growth trajectory positions Razorpay as a trusted investment partner, with experience not only in payments but also as a significant supporter of Indian startups. Previously, Razorpay has invested in ventures like Shiprocket, HostBooks, Inai, and GetVantage, making it a familiar name in the Indian startup ecosystem.
A Revitalized Indian Startup Ecosystem
The launch of the Razorpay Venture Investment Program comes amid a promising resurgence in India’s startup landscape. As more corporate entities and experienced entrepreneurs actively invest in the country’s innovation ecosystem, the demand for funding in tech-driven sectors has surged. Examples like Panasonic’s Panasonic Ignition program, focusing on energy management startups, and the recent city-centric investment challenges from WTFund, co-founded by Zerodha’s Nikhil Kamath, signal a trend where established players are stepping in to nurture early-stage businesses.
By aligning with Peak XV and Lightspeed, Razorpay is setting a new standard for startup support in India, providing not only capital but a comprehensive suite of tools, resources, and mentorship that new ventures need to thrive in a competitive market. As Razorpay’s new venture unfolds, it promises to play a pivotal role in advancing India’s B2B sector, propelling innovation and sustainable growth for years to come.
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