Razorpay, an online payments solution provider, has announced that it has raised $20 million in its Series B funding round. The round was led by Silicon Valley-based accelerator Y Combinator’s YC Continuity Fund and existing investor Tigers Global. Along with them, Matrix Partners has also participated in this round.
The Bangalore-based startup now plans to use the freshly raised funds to push new products which it launched in September last year including facilities like recurring payments, automation of bank transfers like NEFT, and invoice management as part of its new strategy under Razorpay 2.0.
Harshil Mathur, co-founder and CEO of the company, said:
We are looking to expand our team and hire heads for new business verticals. About 50% of new hires will be in technology and the product teams while the rest would be for business roles.
Anu Hariharan, Partner at Y Combinator’s Continuity Fund said,
We are excited to participate in Razorpay’s Series B round. The company’s vision and execution over the last 3 years has shown tremendous results, especially for an India focused SAAS company. With the online and digital payment space going through a massive transformation in India, their business is only going to grow further. There is now an inherent need for better systems, process and infrastructure in place and we are confident that Razorpay is perfectly suited to make the most of the changing landscape.
At present, it has about 130 people and it could hire over 70 people during this year. Mathur said the company, as part of the new strategy, is looking to generate at least 30% of company’s revenue from these new launches.
The latest round takes the total amount the startup has raised to $31.6 million The company last raised undisclosed funding from American payments and financial services company MasterCard, in July 2016. At the same time, the startup also became the second Indian company to be selected for the US-based Y-Combinator accelerator programme.
Founded in 2013 by Harshil Mathur and Shashank Kumar, 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.
Razorpay has been backed by 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).