Bengaluru-based digital payments startup Razorpay has raised $20 million in Series B funding round led by existing investor Y Combinator and Tigers Global along with participation from Matrix Partners.
With the current round, the total funding that Razorpay has received has gone up to $31.5 million. The company had previously raised $11.5 Mn in its Series A funding round from the same marquee investors along with 33 angel investors in October 2015.
Razorpay will deploy newly raised capital to push its recently launched product facilities such as recurring payments, automation of bank transfers like NEFT, and invoice management as part of its new strategy under Razorpay 2.0.
The funds will also be utilised towards expanding the product portfolio into new verticals, building new experiences through cutting edge data science and expansion of team to meet market demands.
Harshil Mathur, CEO & Co-Founder of Razorpay said, “We are elated to see our marquee investors reinstating their faith in Razorpay and our vision. The results that we have managed to achieve demonstrate the growth of India focused SAAS market and its increasing maturity. 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.”
Founded in 2013 by Harshil Mathur and Shashank Kumar, Digital Payments Startup Razorpay aims to onboard new merchants and increase the base to about 2 lakh by the end of 2018. It claimed to have grown at a rate of about 30-35% per month and has about 65,000 merchants on its platform.
The company also counts American payments and financial services company MasterCard as its investor from which it had raised undisclosed funding in July 2016. At the same time, the startup also becomes the second Indian company to be selected for the US-based Y-Combinator accelerator programme.
In the digital payment industry, Facebook co-founder Eduardo Saverin led a $40 million Series D round of funding in Mswipe Technologies, a payment solution startup headquartered in Mumbai.