In a significant move to strengthen India’s B2B startup ecosystemfintech giant Razorpay has announced the launch of its Venture Investment Program in partnership with Peak XV Partners and Lightspeed. The initiative aims to invest up to $1 million in 10-15 early-stage startups annually with a vision to support over 50 innovative founders in the coming years.
The program represents a comprehensive approach to startup development, extending beyond mere financial support to include technology integration, mentorship and market access. This strategic initiative comes at a time when India’s B2B sector is poised for significant growth, with projections indicating the emergence of 10-15 new unicorns in the space over the next five years.
The Razorpay Venture Investment Program will target pre-seed to Series A stage companies across diverse sectors, including fintech, e-commerce, retail , healthcare, logistics, and education .What sets this program apart is its holistic support system, combining capital investment with access to Razorpay’s extensive technical infrastructure and business network.
Led by Vishnu Acharya, Razorpay’s Head of Strategy and Corporate Development, the program offers participating startups privileged access to the company’s API stack and sandbox environments. This technical integration allows young companies to embed financial services within their products while maintaining regulatory compliance – a crucial advantage in India’s rapidly evolving fintech landscape.
The program’s launch is particularly timely, considering Razorpay’s own impressive growth trajectory. The company, which has raised over $740 million to date and achieved a valuation of approximately $7 billion, reported a remarkable 365% increase in profit to INR 33.5 Cr in FY24. This success story positions Razorpay uniquely to understand and address the challenges faced by emerging B2B startups.
Selected startups will automatically become part of the Razorpay Rize Community, a network of over 3,000 founders and businesses. This community aspect provides invaluable networking opportunities, peer support, and various perks, including Razorpay credits. The involvement of Peak XV Partners and Lightspeed as equal investment partners adds another layer of expertise and resource access for participating startups.
For the Indian startup ecosystem, this initiative represents more than just another investment program. It showcases a maturing ecosystem where successful startups are actively reinvesting in the next generation of entrepreneurs. The program’s focus on B2B startups is particularly significant, as this sector typically faces more complex challenges in terms of market access and technical integration compared to consumer-facing startups.
As India continues to digitalize rapidly, programs like this play a crucial role in building a robust foundation for B2B innovation. The combination of financial support,technical infrastructure and mentorship offered by Razorpay and its partners could potentially accelerate the development of India’s next generation of B2B unicorns, contributing to the country’s growing reputation as a global technology hub.
