Razorpay, the Jaipur-based startup which has developed an out-of-the-box online payment system, specially for Indian businesses, has raised a new funding round of $11.5 million which was led by Tiger Global Management, along with the participation of Matrix Partners.

This announced round is a combination of the $9Mn it just raised, and a $2.5Mn round which the company raised earlier in seed funding from around 35 angel investors, including Matrix Partners, Y Combinator, among others. With fresh cash pumping in, the company is now looking forward to further develop its product and also to enter other segments of the payment industry.

The company also got selected into Y Combinator this year. As a part of that, it received $120K in seed funding along with 3 months of acceleration and mentoring support in Silicon Valley.

Founded in 2013 by Shashank Kumar and Harshil Mathur, Razorpay aims to revolutionize online payments by providing simple, affordable and secure way for small businesses, startups and other traditional SME organisations to start accepting online payments.

Razorpay accepts and validates Internet payments via Credit/Debit Cards, Net Banking and popular digital wallets from the end customers in real-time and further provides a secure link between merchant website, various issuing institutions, acquiring Banks and other payment networks. It is claimed to be the only one solution in the country that does not redirect a customer away from the merchant’s website.

RazorPay launched its platform in March this year and already has more than 1,800 merchants using its platform. Those names includes some upstart heavyweights like ZoRooms, Lookup etc. as well. The startup has now grown to a team of 15 people and recently moved from Jaipur to Bangalore.

Shashank Kumar, co-founder of the company, said,

Our patented technology will greatly help in achieving higher transaction success rates and faster checkout time, especially on mobile devices.

Vikram Vaidyanathan, MD at Matrix Partners India, said,

We believe in the founders’ vision of taking a technology-first approach and are excited about partnering them. We remain extremely positive on fintech in India and will take multiple bets in the space.

While RazorPay continues to develop its simple yet powerful payment tech, it will face stiff competition from the likes of PayTM, PayU, CCAvenue etc., all of whom are either already into payment gateways or are developing one. PayTM for example, which is the largest mobile commerce platform in India, has now forayed into financial technology space. It is looking to tap masses by offering them diverse financial services.

In this space, Razorpay will also compete with certain upcoming ventures, most notably Citrus Pay, which recently raised $25 million in Series C round of funding from Sequoia Capital, eContext Asia, Beenos Asia and Ascent Capital. Last week, it acquired Zwitch to venture into fresh verticals.

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