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Online payments firm Razorpay raises $20 mn from Tiger Global, Y Combinator

Razorpay began operations in 2014 by offering online businesses in India the technology to accept all payment modes

Press Trust of India  |  New Delhi 

Razorpay co-founders Harshil Mathur (left) and Shashank Kumar

Payments solutions firm on Monday said it has raised $20 million in funding led by and

The series B round also saw participation from The company has raised $31.5 million till date, including from the present round.

"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," CEO & Co- Founder told PTI.

He added that the company has been witnessing 25-30 per cent growth month-on-month, which it hopes to continue.

The company had previously raised $11.5 million in series A round from the same marquee investors along with 33 angel investors, and a strategic investment by MasterCard in 2016.

"The cash-heavy traditional sectors and new age businesses require comprehensive and powerful products that enable more than just payment acceptance and help them scale money movement through technology. And it is these sectors which we believe will lead the next phase of surge in digital payments in India," he said.

Founded in December 2014, began operations by offering online businesses in India the technology to accept all payment modes. It has a team of over 130 employees. Its merchant partners include GoIbibo, Yatra, Zomato, Zoho, DSP Blackrock, Zerodha, among others.

"We have seen a strong growth in our merchant base as well, which has grown from 20,000 in 2016 to 65,000 by 2017. We expect this to grow to 200,000 this year," Mathur said.

He added that Razorpay expects more than 10 times growth in volume and revenue by next fiscal year and predicts the newly-launched product suite to contribute 30 per cent of its revenue.

He however declined to comment on the revenue details and valuation of the company post the fund raise.

First Published: Mon, January 15 2018. 14:38 IST