Razorpay secures $20 million in Series B round

In a Series B round, Razorpay has raised $20 million fund from its existing investors Tiger Global and Y Combinator, along with Matrix Partners. The company has raised a fund of $31.5 million in total which includes its earlier fund of $11.5 million in a round last year. It also secured a strategic investment from Mastercard in 2016.

The fund will be used to enhance Razorpay 2.0, its suite of payment products for businesses. It will also use the money for growing technological capabilities, expanding its payments products to clients in new sectors and hiring new talent.

While unveiling Razorpay 2.0 in September, the company said that it was shifting from being a payment gateway provider to a comprehensive payments platform for small businesses and firms. It expects the newly launched product suite to contribute 30% of its revenue in this fiscal year.

Founded by Shashank Kumar and Harshil Mathur in 2014, the company enables businesses to accept online payments via credit/debit cards, net banking, wallets and the Unified Payments Interface.

The company caters to over 65,000 businesses including Goibibo, Yatra, Zomato and Zoho. It plans to grow its merchant base to 200,000 by the end of 2018. It claims to clock 25-30% month-on-month growth in terms of revenue and expects to grow 10-fold in terms of volume and revenue by next fiscal year.