Digital payments startup Razorpay has raised $20 million in its series B funding round led by Tiger Global and Y Combinator along with the participation of Matrix Partners. Till date, the company has raised $31.5 million.
The newly acquired funding will be used by the company to improve technology and product scaling. It is also planning for geographical enlargement with the help of cutting-edge data science and expansion of team to meet market demands. The company has been seeing a continuous monthly growth of around 25-30%. It is planning to serve 500 million end users by the end of 2020. It is hoping that its newly launched suite of products will account for over 30% of its revenues.
Razorpay was founded by Shashank Kumar and Mathur in 2014 and serves over 65,000 merchants including small businesses, startups such as Goibibo, Zomato, Nykaa, Quikr, Chai Point, UrbanClap and NestAway, and other traditional organisations in the government and education sectors. Razorpay provides solutions to various payment-related problems by managing payment disbursement, recurring payments, payment collection and invoice management of their merchants. They also devise means for generating new revenue channels for retailers.
By the end of 2018, they are planning to increase their user base to 2 lakh from the existing number of 65,000. In 2016, the company raised $11.5 million from Tiger Global, Matrix Partners, Y Combinator, Mastercard and 33 angel investors. In September 2017, they launched four new products – Razorpay Route, Razorpay Smart Collect, Razorpay Subscriptions and Razorpay Invoices which will help the startup in automating all the payment related tasks. Soon, it is planning to shift its focus from just a payment gateway provider to a comprehensive payments platform for small businesses and firms.
The startup believes that government’s decision to reimburse Merchant Discount Rate (MDR) will improve the overall use of digital payment platforms. It is also planning to soon incorporate blockchain with its services, wherever possible.