Jaipur-based an online payment startup, Razorpay has raised $120,000 from US-based startup accelerator, Y Combinator. As part of the deal, Y Combinator will also provide the startup with three-month acceleration.
The raised funding will be used for covering compliance expenses for setting up a payment gateway and product development. Razorpay is an online payment gateway firm for small businesses, startups, and other traditional SME like schools, colleges and training centres. After Cleartax, it is the second India-focused company to get incubated at Y Combinator.
The startup is directly competing with Citrus, MobiKwik and CCAvenue among others. Citrus had launched its user centric mobile app ‘Citrus Cube’, a personal payments manager that Tracks, Pays & Reminds users of their bills. MobiKwik, which is available on all platforms – iOS, iPad, Windows, Android and Blackberry, enables users to pay for their recurring recharge and bill payment transactions and to shop online. CCAvenue had revamped its website with new features and services in January 2014. The new platform aims to meet the demands of start-ups and next generation eCommerce in terms of scalability, functionality or adaptability.