Bengaluru-based online payment gateway startup Razorpay Software Pvt. Ltd has raised $20 million (Rs 127 crore) in its Series B round of funding led by existing investors Tiger Global and Y Combinator.
Existing investor Matrix Partners also participated in the round, Razorpay said in a statement.
The latest round takes the total amount the startup has raised to $31.5 million, the company said.
The startup will be using the funds to scale up products and improve technological capabilities and offerings. The funds will also be used to expand the team.
“The cash-heavy traditional sectors and new age businesses require comprehensive and powerful products that enable more than just payment acceptance… and it is these sectors which we believe will lead the next phase of surge in digital payments in India,” said Harshil Mathur, chief executive and co-founder of Razorpay.
In July 2016, the company received an undisclosed investment from American payments and financial services company MasterCard.
Since late 2015, the startup has been working with the MasterCard Start Path programme that accelerates e-commerce and fintech startups and gives them access to MasterCard’s network.
Prior to that, it raised $11.5 million from Tiger Global, Matrix Partners and Y Combinator.
Razorpay has 33 angel investors including Kunal Bahl and Rohit Bansal (Snapdeal founders); Abhay Singhal, Amit Gupta and Naveen Tewari (InMobi founders), Kunal Shah and Sandeep Tandon (Freecharge founders), former chief product officer of Flipkart Punit Soni, Ram Shriram (board member and an early investor in Google), Justin Kan (Y Combinator partner and Twitch founder). It is the second Indian company to be selected for the US-based Y-Combinator accelerator programme.
The company was set up in 2013 by IIT Roorkee alumni Shashank Kumar and Mathur. Kumar earlier worked with Microsoft while Mathur was working at Schlumberger before launching Razorpay. The firm helps businesses accept online payments via credit card, debit card, net banking and mobile wallets from end customers.