Razorpay, India’s first converged payments solution company, announced today its sseries B funding round of $20 million, led by Tiger Global and Y Combinator along with participation from Matrix Partners. The current round raises the total funding the company has received to $31.5 million. The company had previously raised $11.5 million in their series A round from the same marquee investors along with 33 angel investors, and a strategic investment by MasterCard in 2016.

With an aim to revolutionize digital payments for businesses, the company will use the funds for its next phase of growth by scaling products launched as part of Razorpay 2.0 and bolster its technological capabilities and offerings. The funds will also be utilized towards expanding the product portfolio into new verticals, building new experiences through cutting edge data science and expansion of team to meet market demands.

“We are elated to see our marquee investors reinstating their faith in Razorpay and our vision,” said Harshil Mathur, CEO and cofounder of Razorpay. He continued, “The results that we have managed to achieve demonstrate the growth of India focused SAAS market and its increasing maturity. The idea we are promoting with Razorpay is that there will be one comprehensive and innovative product that will manage the entire money movement for India’s huge underserved business community. The cash-heavy traditional sectors and new age businesses require comprehensive and powerful products that enable more than just payment acceptance and help them scale money movement through technology. And it is these sectors which we believe will lead the next phase of surge in digital payments in India.”

In 2015, Razorpay became the second Indian company to be included in the famed Y Combinator accelerator program. The California based investor has now led Razorpay’s series B round through their Y Combinator Continuity fund.

Anu Hariharan, partner at Y Combinator's Continuity Fund said, “We are excited to participate in Razorpay's series B round. The company’s vision and execution over the last three years has shown tremendous results, especially for an India focused SAAS company. With the online and digital payment space going through a massive transformation in India, their business is only going to grow further. There is now an inherent need for better systems, process and infrastructure in place and we are confident that Razorpay is perfectly suited to make the most of the changing landscape. They have disrupted the market with top talent shipping out great products, through cutting-edge technology and a customer-centric approach. We are excited to continue our relationship and eagerly looking forward to the progress this company will make over the next few years.”

Founded in December 2014, Razorpay began its journey by offering online businesses in India the technology to accept all payment modes through single line integration along with focusing on essentials such as paperless on-boarding, 24x7 support and superior checkout experiences. Having disrupted the payment gateway industry over these last three years, the company with a team of over 130 employees has successfully evolved as India’s first converged payments solution company, with the launch of Razorpay 2.0 and its new suite of products in September 2017.

Processing billions of dollars in payments, the company today caters to over 65,000 businesses including the likes of GoIbibo, Yatra, Zomato, Zoho, DSP Blackrock, Zerodha among others. Razorpay is geared to increase its merchant count to 200,000 by the end of 2018.

Widely recognized as one of the foremost innovators in the Indian payments space, Razorpay is equipped to address payment challenges such as managing cash flows, disbursement of money, managing NEFT/RTGS/IMPS receivables and collection of subscription payments among others.

The company has clocked in a growth rate of 25-30 percent month-on-month and aims at impacting lives of 500 million end consumers by 2020. Razorpay expects more than 10x growth in volume and revenue by next fiscal year and predicts the newly launched product suite to contribute 30 percent of its revenue.