American payments and financial services company MasterCard has invested an undisclosed amount in Razorpay, an online payment gateway solution for small and medium enterprises and platforms.
This marks the second equity-based investment done by MasterCard.
Bengaluru-based Razorpay, which works with online product and technology businesses such as cloud telephony company Knowlarity and lifestyle ecommerce portal Nykaa, will be part of a six-month long MasterCard Start Path programme for startups targeted at technology development.
“The association with MasterCard opens up the network of banks it works with. As our product focuses on reducing the failure rate of transaction, this will help us bring down the number of hops,” said Harshil Mathur, cofounder of Razorpay to the source
The company had raised Rs 64 crore from Tiger Global in Series A and Matrix Partners along with multiple angel investors in the seed round. The 33 angel investors include Jeff Huber, senior VP at Google X; Snapdeal cofounders Kunal Bahl and Rohit Bansal; InMobi cofounders; and former Flipkart chief product officer Punit Soni.
The company incorporated in 2013 works with 8,000 merchants at present. “We are developing new products, especially in the space of Unified Payment Interface and EMI-based payments. In these scenarios the partnership with banks are pivotal,” Mathur said.
“India is helping to shape the future of ecommerce through strategic collaborations and innovative technology. The work that Razorpay is doing in India complements existing Master-Card solutions that are helping merchants of all sizes and grow their business,” said Stephane Wyper, global lead for MasterCard Start Path programme.