The India-based payments solutions company named Razorpay has raised $20 million in Series B funding round. The company itself confirmed the raised amount led by Tiger Global and Y Combinator via its Continuity Fund and Matrix Partners.
Till date, the company has raised a total of $31.5 million which includes previously raised $11.5 in Series A. Razorpay is a payments solutions firm that makes it easy to install payment gateway, just like Stripe, on websites and apps through the use of an API. The company will use the funds in adding more customers to its database and launching new products on its platform.
The company started its business in 2015 with the help of same investors- Tiger Global and YC and 33 other investors. Mastercard also invested an undisclosed amount in the startup. The company hasn’t revealed its valuation but according to TechCrunch sources, Razorpay raised $20 million at a valuation of over $100 million. The company is still silent on its revenue and valuation post the fundraiser program.
Company’s CEO and co-founder Harshil Mathur told PTI that the company has been witnessing 25-30 percent growth month-on-month. “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.”
The company is offering its payment gateway to major online businesses which is easy to install and also accepts all payment modes. The company has a staff of over 130 and its merchant partners include Zomato, Zoho, GoIbibo, Yatra, and DSP Blackrock. According to Mathur, company’s merchant base has grown from 20,000 in 2016 to 65,000 in 2017 and is expecting it to reach 2 lakh by the end of 2018.
Razorpay soon to see competition from its rival companies such as Stripe and Paypal as they have recently announced their services in the country with Stripe being in private beta mode for now. The company is currently competing with other local established players such as Paytm and PayU.
Here’s what Anu Hariharan, Partner at Y Combinator’s Continuity Fund has commented- “We are excited to participate in Razorpay’s Series B round. The company’s vision and execution over the last 3 years have shown tremendous results, especially for an India focused SAAS company.”