The latest round takes the total external funding raised by the company to $31.5 million. In 2016, the Bengaluru-based company had raised an undisclosed amount of funding from Mastercard Inc. Prior to that, it had raised $11.5 million from Tiger Global, Matrix Partners and Y Combinator, along with some angel investors.
Razorpay authenticates and accepts payments made through credit, debit cards, internet banking and digital wallets by providing a secure link between merchants and users.
Founded in December 2014, Razorpay was included in the Y Combinator accelerator programme in 2015. The California-based investor has led the Indian firm’s Series B round through its Y Combinator Continuity fund.
According to an official statement, the company plans to use the proceeds for its next phase of growth by scaling products launched as part of Razorpay 2.0 and enhancing its technological capabilities and offerings.
“The funds will also be utilized towards expanding the product portfolio into new verticals, building new experiences through cutting-edge data science and expansion of team to meet market demands,” it added.
At present, Razorpay claims to have over 65,000 online sellers as merchants and plans to increase this number to 200,000 by the end of the year.
As the emphasis on digital economy grows in India, this space has attracted plenty of investor interest. In December last year, Mswipe Technologies Pvt. Ltd, which makes point of sale (PoS) machines for merchants, raised $10 million in funding from B Capital Group and DSG Consumer Partners, as part of its Series D round.
Most recently, mobile payments solutions startup ToneTag was reported to have raised $1.3 million in funding from Tropical Star Ltd.