Razorpay raises $20 mn in round led by Tiger Global
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 expanding its technology base escalating its payment products into new verticals 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 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 firm enables businesses to accept online payments via credit/debit cards, net banking, wallets, and the Unified Payments Interface from users. Razorpay competes with other payment gateway providers like
BENGALURU:
CCAvenue, Instamojo, Citrus Pay and PayUbiz.
The current round raises the total funding the firm has received to $31.5 million. It had previously raised $11.5 million in their Series A round last year, and 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 cash heavy 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,” Harshil Mathur, CEO of Razorpay said in a statement.