BENGALURU: In an attempt to pioneer the m-payments business vertical, Razorpay, IIT alumni-founded online payment gateway solution, has raised $9 million in its series A funding.
Led by Tiger Global along with participation from Matrix Partners, Razorpay also announced its earlier Seed round of $2.5 million from Matrix Partners, Y Combinator and angel investors including Snap deal founders Kunal Bahl and Rohit Bansal; Flipkart CPO Punit Soni; Inmobi founders Abhay Singhal, Amit Gupta and Naveen Tewar; Kunal Shah and Freecharge founders Sandeep Tandon, 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 brings the total to 11.5 million.
Razorpay accepts and validates Internet payments via Credit/Debit Cards, Net Banking and popular digital wallets from the end customers in real-time. Razorpay provides a secure link between merchant website, various issuing institutions, acquiring Banks and other payment networks.
The founders indicate that in just one year, Razorpay has made great progress and has made life easier for small businesses and startups as far as accepting payments are concerned. Few of its customers include: RoadRunnr, Lookup, Gozefo, Innerchef, Teen Patti Gold, LocalOye, UrbanPiper, Instafeez, Neostencil, Chai Point & Sattviko along with 1800+ other customers.
The simple and robust Razorpay platform is highly recommended by many due to their superfast and completely online onboarding of merchants, easy and hassle free integration and powerful Android and iOS SDKs for mobile payments. With support for international payments, 50+ banks, popular digital wallets and a 24×7 support team, Razorpay is fast becoming the de fac to choice for payments.
On securing the funds, Harshil Mathur, Co-Founder, Razorpay, said, “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 eco-system. The fact that we have been backed by marquee investors, e-commerce entrepreneurs with amazing track record and other leaders in the payments eco-system 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.”
Shashank Kumar, co-founder, Razorpay, added, “We are 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.”
“Digital payments are a very large opportunity and it is still early days for the industry in India. Transaction success rates are still very low and it is still difficult for smaller merchants to accept online payments. We believe in Harshil and Shashank’s vision of taking a technology first approach and are excited about partnering with them. We remain extremely positive on Fin-Tech in India and will take multiple bets in the space” said Vikram Vaidyanathan, MD at Matrix Partners India.