Digital payment segment is booming in India. Statista report states that this segment transaction value currently amounts to $51,756 million and will grow at a CAGR of 17.4 per cent to $98,309 million by 2022. In this segment, a payment solution startup Razorpay has raised $20 million funding in Series B round from investment firm Tiger Global, seed accelerator Y Combinator and venture capital firm Matrix Partners.
Bengaluru-based payment gateway solution provider Razorpay was launched in 2013 by Harshil Mathur and Shashank Kumar. The platform provides away to accept, process and disburse payments for online businesses. The startup plans to use the raised funding to expand its services of payment disbursement, recurring payments, payment collection and invoice management. The source of finance of the company is a commission from each payment transaction made by the client.
Stripe and PayPal are likely to focus onglobal companiesserving Indian markets. We are focused ondomestic businesses, CEO of Razorpay,Harshil Mathursaid.
The startup has raised a total of $31.6 million to date from which $11.5 million was raised by Mastercard in 2016. The startup has also raised funding of $9.6 million from Tiger Global and Matrix Partners in 2015.
Anu Hariharan, a partner at Y Combinators Continuity Fundsaid, The companysvisionandexecutionover the last three years have shown tremendous results, especially for an India-focusedSAAS company. With the online and digital payment space going through amassive transformationin India, theirbusinessis onlygoing to growfurther.
The startup current merchants include GoIbibo, Yatra, Zomato, Zoho, etc. The startup is expecting to increase up to 2 lakh by the end of this year.