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April 22, 2022updated 25 Apr 2022 12:33pm

India’s Razorpay to launch secondary share sale worth $100m

Indian payment firm Razorpay is working on a deal to sell secondary shares worth $100m, the Economic Times reported. 

Investors including Lightspeed Venture Partners would subscribe to the offering, the sources told the publication. 

Razorpay’s angel investors, employees and some other backers are going to sell their stake and the deal is expected to close in the coming weeks.

The firm’s founders may also dilute their shareholding, but a final decision is yet to be made, the sources added.

The news comes after Razorpay bagged $375m in Series F round at a valuation of $7.5bn in December 2021. 

According to one of the sources, “some of the incoming investors wanted to participate in the December round but could not be accommodated, now this is happening via secondaries.”

“Some of the angels have already divested their holdings in the company, as part of the secondary deal. Besides Lightspeed, there may be one or two more new investors coming in,” another source said. 

The final value of the deal will depend on how much shareholding Razorpay employees are going to dilute. 

Razorpay, which was founded by Harshil Mathur and Shashank, is one of the most valued fintechs in the Indian market. 

The startup has raised more than $740m in funding since its inception from the likes of GIC, Tiger Global, Lone Pine Capital, and Sequoia Capital, among others. 

Most recently, Razorpay bought payments technology startup IZealiant Technologies and Malaysian fintech firm Curlec. 

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GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

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