Razorpay has raised $375 million in a funding round led by TCV, Lone Pine Capital and Alkeon Capital. The company has seen a seven-fold increase in its valuation in a year. Razorpay has been one of the primary beneficiaries of the digital payments sector, as the majority of its merchants clocked fast-paced growth since coronavirus hit the country.

Initially, the funding round was finalised at $250 million at a valuation of $6 to $6.5 billion. Still, the increased investor interest in Razorpay’s growth, as well as its new banking platform, led to the funding round getting boosted to $375 million. With this, Razorpay has become one of the most valued startups in India and has raised $741.5 million so far.

Harshil Mathur, CEO and co-founder of Razorpay, said that the participation of these investors is a validation for us and will be helpful in IPO in the next 2-3 years. Razorpay’s existing investors such as Tiger Global, Sequoia Capital India, GIC and Y Combinator also participated in the funding round, the company said in a statement.