Razorpay, an online payment gateway solution, has raised a series A funding of $9 million led by Tiger Global along with participation from Matrix Partners.
The company had earlier closed its seed round of $2.5 million from Matrix Partners, Y Combinator and angel investors including Kunal Bahl & Rohit Bansal (Snapdeal founders), Punit Soni (Flipkart CPO), Abhay Singhal, Amit Gupta & Naveen Tewari (Inmobi founders), Kunal Shah & Sandeep Tandon (Freecharge founders), Bill Gajda (SVP, Global Head of Innovation, Visa), Jeff Huber (SVP, GoogleX), Ram Shriram (Board member and an early investor in Google), Justin Kan (Y Combinator partner and Twitch Founder), in total 33 angel investors. This latest round brings the total raised capital of the firm to $11.5 million.
Razorpay accepts and validates Internet payments via Credit/Debit Cards, Net Banking and digital wallets from the end customers in real-time. It provides a secure link between merchant website, various issuing institutions, acquiring banks and other payment networks. Few of its customers include: RoadRunnr, Lookup, Gozefo, Innerchef, Teen Patti Gold, LocalOye, UrbanPiper, Instafeez, Neostencil, Chai Point & Sattviko along with over 1800 other customers.
Razorpay, backed by Y Combinator, was started in 2014 by Shashank Kumar and Harshil Mathur, both alumni of IIT-Roorkee. It is an online payment gateway firm for small businesses, startups, and other traditional SME like schools, colleges and training centres.
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It is directly competing with Citrus, MobiKwik and CCAvenue among others. Earlier this year, Citrus launched its user centric mobile app ‘Citrus Cube’, that Tracks, Pays & Reminds users of their bills and in January 2014, CCAvenue revamped its website with new features and services to meet the demands of start-ups and next generation eCommerce in terms of scalability, functionality or adaptability. Rajorpay is also building the next generation payments infrastructure which will accelerate the future e-commerce growth in India.
“Our patented technology will greatly help in achieving higher transaction success rates and faster checkout time especially on mobile devices while making payment gateway integration as easy as embedding a few lines of code. The funding raised will help us accelerate the company’s robust growth and future success,” said Shashank Kumar.