Razorpay raises $20 mn from Tiger Global, others

THE CURRENT ROUND RAISES THE TOTAL FUNDING THE FIRM HAS RECEIVED TO $31.5 MILLION. IT HAD RAISED $11.5 MILLION IN 2017.

BENGALURU: Online payment solutions company Razorpay Software Pvt. Ltd has raised $20 million in a Series B round led by Tiger Global and Y Combinator, along with participation from Matrix Partners, the company said in a statement on Monday.

Razorpay will use the funds to scale up Razorpay 2.0, its suite of payment products for businesses.

It will also look at growing its technological capabilities, acquiring clients from new sectors for its payments products and hiring new talent.

While unveiling Razorpay 2.0 in September, the company said that it was shifting from being a payment gateway provider to a comprehensive payments platform for small businesses and firms.

It expects the newly launched product suite to contribute 30% of its revenue in this fiscal year.

Founded in 2014 by Shashank Kumar and Harshil Mathur, the company enables businesses to accept online payments via credit/debit cards, net banking, wallets and the Unified Payments Interface.

Razorpay competes with other payment gateway providers like Ccavenue, Instamojo, Citrus Pay and Payubiz.

The current round brings the total funding the company has received to $31.5 million. It had previously raised $11.5 million in a round last year, and also secured a strategic investment from Mastercard in 2016.

“The idea we are promoting with Razorpay is that there will be one comprehensive and innovative product that will manage the entire money movement for India’s huge underserved business community. The cashheavy traditional sectors and new age businesses require comprehensive and powerful products that enable more than just payment acceptance and help them scale money movement through technology,” Mathur, chief executive officer of Razorpay, said in a statement.