In what could herald the first unicorn creation of 2025, Bengaluru-based fintech company Juspay is in advanced discussions to raise approximately $100 million in fresh funding. Multiple sources familiar with the matter reveal that the SoftBank-backed payment solutions provider is engaging with prominent investors including Warburg Pincus, Kedaara Capital, and Norwest Venture Partners, potentially valuing the company at $1 billion.
The funding talks, being facilitated by investment bank Avendus Capital, represent a significant markup from Juspay’s previous valuation of around $400 million (₹3,500 crore). This development comes at a crucial time when many Indian startups are grappling with valuation challenges in the post-pandemic landscape.
“The company’s strong performance metrics and sustainable growth model make it an attractive investment opportunity,” notes a senior fintech analyst at a leading Mumbai-based venture capital firm, speaking on condition of anonymity. “Juspay’s focus on payment infrastructure, combined with relatively low burn rate, positions it uniquely in the current market.”
Founded by Vimal Kumar and Ramanathan RV, Juspay has demonstrated remarkable financial performance, reporting a nearly 50% increase in revenue for FY24 while successfully reducing losses by approximately 8%. The company’s payment orchestration solutions serve as a crucial technology layer above traditional payment gateways, streamlining digital transactions for businesses across India.
The fresh capital injection is expected to fuel Juspay’s international expansion plans and product development initiatives. The company has already established a strong foundation in India’s digital payments ecosystem, having raised close to $100 million to date, including a significant round led by SoftBank in December 2021.
Beyond its core payment solutions, Juspay has demonstrated innovation through initiatives like Namma Yatri, a mobility application built on the Beckn Protocol. The recent decision to spin off Namma Yatri as an independent entity reflects the company’s strategic approach to value creation. Additionally, the acquisition of LotusPay in early 2024 has strengthened Juspay’s offerings in the BFSI segment.
For Tamil Nadu’s startup ecosystem, Juspay’s potential unicorn status could have far-reaching implications. “This development could attract more investor attention to South India’s technology corridor,” explains Dr. Rajesh Kumar, Professor of Entrepreneurship at IIT Madras. “We’re seeing a growing number of fintech companies establishing development centers in Chennai, and Juspay’s success could accelerate this trend.“
The company’s growth trajectory aligns with Tamil Nadu’s ambitious plans to establish itself as a fintech hub. With Chennai already hosting several global financial services companies, Juspay’s elevation to unicorn status could strengthen the state’s position in India’s digital payment landscape.
While Juspay, Kedaara Capital, Warburg Pincus, and Norwest Venture Partners have not officially commented on the funding discussions, sources indicate that the deal could be finalized in the coming weeks, subject to due diligence and regulatory approvals.
