India’s payments solutions firm Razorpay has raised $20 million funding led by Tiger Global and Y Combinator with participation from Matrix Partners. However, company declined to disclose the company valuation post this fundraise.
“We will use the funds for our next phase of growth by scaling products and bolstering our technology and expanding to newer markets like South East Asia,” said Razorpay CEO & Co-Founder Harshil Mathur.
With this funding, Razorpay has raised a total $31.5 million funding until now. It had earlier raised $11.5 million funding from a clutch of investors including Tiger Global, Y Combinator, Matrix Partners and 33 angel investors. MasterCard had also made a strategic investment in Razorpay in June 2016.
This announcement comes at a time when global giants like Paypal and Stripe have announced their Indian operations in recent months.
Established in 2013, Razorpay started off as a payment gateway provider for online merchants. It claims to have a merchant base of 65,000 businesses including GoIbibo, Yatra, Zomato, Zoho, DSP Blackrock and Zerodha among others and hopes to increase this base to 2 lakh by the end of this year.
In September, the company launched a suite of new payment products to rebrand itself as a completely managed payment solution.
These products aim to solve various payment challenges faced by merchants including payment disbursement, recurring payments, payment collection and invoice management, while creating new revenue channels for Razorpay.
At the time, Mathur had told ET that they expect these products to contribute 30%-40% to the company’s revenue in the next 12 months. The company will also look to use some of these products to enter new categories such as insurance premium and mutual fund payments.