Easebuzz: Significant Funding Round for Digital Payments Expansion
Digital payments leader Easebuzz has successfully secured Rs 240 crore (around $28.2 million) in its Series A financing round. This funding includes Rs 200 crore ($23.5 million) raised in primary capital and Rs 40 crore ($4.7 million) from secondary sources.
The board at Easebuzz authorised the issuance of 2,53,285 Series A preference shares along with 7 equity shares at a price of Rs 7,896 per share, as indicated in their regulatory report from the Registrar of Companies (RoC). This marks the company’s second funding round; previously, it attracted $4 million during its seed round spearheaded by 8i Ventures, Varanium Capital, and Guild Capital.
In this latest fundraising effort, Bessemer Venture Partners took the lead with an investment of Rs 141.28 crore ($16.6 million), while existing investors Varanium Capital and 8i Ventures each provided Rs 27 crore. Additionally, Reed India Consulting contributed Rs 4.7 crore to the round.
The funds will be allocated towards business growth initiatives, enhancing market reach, and investing in secure, scalable technology. Furthermore, the capital will bolster working capital, aid marketing efforts aimed at customer acquisition, and address strategic corporate priorities, all essential for fostering long-term growth and innovation within the digital payments landscape.
The specifics of the secondary investment round have not been detailed in the company’s regulatory documentation.
Estimates from Startup Superb suggest that post-allotment, Easebuzz is poised for a valuation between $195 million and $200 million, a remarkable rise from approximately $12 million during its seed funding stage. To date, Easebuzz has garnered a total of $34 million in funding. Data from startup intelligence platforms reveals that 8i Ventures holds the largest external stake at 10.88%, followed by Varanium Capital and Bessemer Venture Partners at 8.48% and 8.47%, respectively. Notably, Rohit Prasad, the co-founder and Managing Director, retains a stake of 27.84%. It is important to note that these percentages might adjust after disclosing the complete secondary transaction details.
Established in 2024, Easebuzz has carved a niche in the payment gateway domain, focusing on small and medium-sized enterprises (SMEs). The company provides an extensive range of plug-and-play application programming interfaces (APIs) that enable smooth payment processing, disbursements, and overall financial operations.
Year-over-year, the company achieved a 24% growth in operating revenue, reaching Rs 290 crore, and reported a profit of Rs 37.73 lakh. During the same timeframe, the platform facilitated a Gross Transaction Value (GTV) exceeding Rs 1,00,000 crore, according to company data.
In the competitive payment processing arena, Easebuzz faces notable rivals such as Razorpay, Cashfree Payments, Paytm, and PhonePe, among others.