Digital payment solutions company Razorpay has raised $20 million in funding led by Tiger Global and Y Combinator in its series B round.
The Bengaluru-headquartered firm also saw participation from Matrix Partners. Till date, it has raised $31.5 million including the latest round.
According to Harshil Mathur, CEO & Co-Founder, Razorpay, the startup will use the latest proceeds for expansion to new markets like South East Asia besides spending on technology and product scaling, reports ET.
He added that the company has been witnessing 25-30 per cent growth month-on-month, which it hopes to continue.
Founded in 2014 by Shashank Kumar and Mathur, the payment company has over 65,000 merchants onboard, 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 claims to solve various payment challenges faced by merchants including payment disbursement, recurring payments, payment collection and invoice management while creating new revenue channels for it.
The firm aims to increase its merchant base to 2 lakh by the year-end.
A profitable firm in the financial year 2016, it had raised $11.5 million from marquee investors like Tiger Global, Matrix Partners, Y Combinator, Mastercard and 33 angel investors in the same year.
In September, last year, the company launched four new products viz Razorpay Route, Razorpay Smart Collect, Razorpay Subscriptions and Razorpay Invoices. It will help businesses to automate payment-related tasks like money transfers and recurring payments.
Under its new brand named, Razorpay 2.0, the company is trying to shift from a payment gateway provider to a comprehensive payments platform for small businesses and firms.
The firm competes with local players such as Instamojo, PayU India including global players like Paypal and Elon Musk-backed Stripe. Paypal and Stripe made their debut in India in November and December last year respectively.