The Indian fintech platform Razorpay has raised US$9 million in Series A funding led by leading VC firm Tiger Global, with participation from existing investor Matrix Partners, according to a release. Including its US$2.5M seed funding round, the company’s total fundraise to date is US$11.5 million. Funding will be used to build Razorpay’s product and enter other segments of the payment industry.
“We believe that the online payments infrastructure in India has not developed at the same pace as the rest of the e-commerce and m-commerce ecosystem,” remarked Razorpay Co-Founder Harshil Mathur. “The fact that we have been backed by marquee investors, e-commerce entrepreneurs with amazing track record and other leaders in the payments ecosystem has reinforced our belief that the Indian payment space was in much need of a technology-focused solution. We intend to deploy the funds for scaling up the product, building the right team and for strategic forays into the online payments industry.”
Incubated at startup accelerator Y Combinator, had earlier raised $2.5 M (INR 16 Cr) in seed funding from Matrix Partners, Y Combinator and 33 other angel investors including Ram Shriram, an early Google investor; Jeff Huber, senior vice president at GoogleX; Justin Kan, a partner at Y Combinator, 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).
Razorpay validates internet payments via credit or debit cards, net banking and digital wallets from the end customers in real time. The firm, with a 15-member team, recently relocated from Jaipur to Bangalore. Since its March 2015 launch, Razorpay has seen over 1,800 merchants use its platform, according to the release. The company now aims to surpass the figure of 5,000 merchants by the year’s end. Current customers include RoadRunnr, Lookup, Gozefo, Innerchef, Teen Patti Gold, LocalOye, UrbanPiper, Instafeez, Neostencil, Chai Point and Sattviko.