Razorpay, which aims to revolutionize online payments system in India with its impressive, India-centric digital payment gateway solution, has secured yet another investment in a short span. The investment comes from Mastercard and the amount remains undisclosed.
This is the third funding round raised by the company. Earlier, the company had raised around $11.5 million. In October, it had raised $9 million in its Series A round from Tiger Global, and others. Prior to that, it had raised $2.5 million in seed round.
Apart from getting funding, it will also get enrolled in Mastercard’s Start Path program. The program accelerates startups for six months and gives them access to Mastercard’s network. It also encourages startups to build on top of Mastercard’s current tech solutions.
Commenting about this development, Harshil Mathur, cofounder of Razorpay, said,
The association with MasterCard opens up the network of banks it works with. As our product focuses on reducing the failure rate of transaction, this will help us bring down the number of hops. The work that Razorpay is doing in India complements existing Master-Card solutions that are helping merchants of all sizes and grow their business.
Stephane Wyper, global lead for MasterCard Start Path programme, said,
India is helping to shape the future of ecommerce through strategic collaborations and innovative technology. The work that Razorpay is doing in India complements existing Master-Card solutions that are helping merchants of all sizes and grow their business.
Founded in 2013 by Shashank Kumar and Harshil Mathur, Razorpay aims to revolutionize online payments by providing simple, affordable and secure way to India’s small and medium stores to start accepting online payments.
It accepts and validates Internet payments via Credit/Debit Cards, Net Banking and popular digital wallets in real-time. It is claimed to be the only solution in the country that does not redirect a customer away from the merchant’s website.
Razorpay is also among a very few Indian startups that got selected into Y Combinator. As a part of that, it received $120K in seed funding along with 3 months of acceleration and mentoring support in Silicon Valley.
The startup, which is just three years old, claims to be working with over 8,000 merchants. Its merchant list includes fast food chain Papa John’s and Chai Point, among others.
In this space, Razorpay competes against the likes of Citrus Pay. Citrus Pay recently raised $25 million in Series C round of funding from Sequoia Capital, and others. But despite competition from traditional players, Razorpay has stormed ahead of others with its unique digital payments tech, targeted specially to Indian merchants.