Digital payments and banking solutions unicorn Razorpay has launched a venture investment initiative to bolster early-stage B2B startups.
The Razorpay Venture Investment Programme, established in partnership with Peak XV Partners and Lightspeed, will invest up to $1 million per startup in 10-15 early-stage startups annually, spanning sectors like fintech, healthcare, education, logistics, and hospitality.
Beyond financial support, Razorpay will grant these companies access to its proprietary API suite and sandbox environments, along with one-on-one mentorship from its leadership team. Razorpay will also introduce the startups to its distribution network, product partnerships, and customer connections, helping startups reach more customers.
Vishnu Acharya, the company’s Head of Strategy and Corporate Development, will oversee the selection and mentorship of early-stage ventures.
“Building a startup, particularly in the B2B space, is a daunting challenge. Having experienced it firsthand and witnessing founders across industries face this daily, we believe the support system must go beyond just capital,” Harshil Mathur, Co-founder and CEO, Razorpay said in a statement.
“With the Razorpay Venture Investment Program, we aim to ease this journey by providing access to the right technology, mentorship, and partnerships to help founders innovate and scale faster,” he added.
Additionally, startups under the programme are automatically enrolled in Razorpay Rize, a community of over 3,000 founders, executives, and industry leaders. This network offers startups the opportunity to engage with seasoned entrepreneurs, leverage peer support, and gain insights critical for scaling. Membership in Rize also includes curated benefits, such as Razorpay credits and exclusive networking events.
Startups can apply directly through Razorpay’s website.
A month ago, Peak XV Partners, formerly Sequoia Capital India, cut its largest fund by 16%, returning around $465 million to its Limited Partners (LPs) due to a slowdown in growth-stage funding.
Originally raising $2.85 billion in May 2022, with $2 billion designated for Indian startups, Peak XV cited challenges in capital deployment over the past two years and rising compliance and governance issues faced by startups.
The firm, known for backing nearly 700 companies, explained its decision in light of high public market valuations in India and increased focus on seed and early-stage opportunities.
