Bengaluru based payment gateway Razorpay has raised around Rs 58 crore in series A round led by Tiger Global. Matrix Partners also participated in this round. The funding will be used to enhance the product and also fuel the entry plans into other segments of the payment industry.
Prior to this Razorpay has raised around Rs 16 Crore in seed funding from Matrix Partners, Y Combinator and 33 other angel investors including Ram Shriram, an early Google investor; and Justin Kan, a partner at Y Combinator; Jeff Huber, senior vice president at GoogleX. The startup was incubated at Silicon Valley’s top accelerator Y Combinator.
The startup that recently shifted base from Jaipur to Bengaluru, was founded by Shashank Kumar and Harshil Mathur in March, 2015 and has a current team strength of around 15. Razorpay validates internet payments via credit or debit cards, net banking and digital wallets from the end customers in real time. Kumar says :
“Our patented technology will greatly help in achieving higher transaction success rates and faster checkout time, especially on mobile devices,”
Razorpay claims that, merchants have experienced 30 per cent higher success rate in completing transactions with Razorpay’s gateway as it supports payments at 2G speeds, among other things. According to Mathur, this and other innovations is what is making them stand out from other payment gateways that are just sales focused and not technology focused. Vikram Vaidyanathan, MD at Matrix Partners India says:
“We believe in the founders’ vision of taking a technology-first approach and are excited about partnering them. We remain extremely positive on fintech in India and will take multiple bets in the space,”
The startup has more than 1,800 merchants using its platform and aims to cross a figure of 5,000 merchants by the end of this year. Razorpay’s customers include startups such as RoadRunnr, Lookup, Gozefo, Teen Patti Gold, LocalOye, Instafeez, NeoStencil and Chai Point. Their easy on-boarding, quick integration and high success rates is what is making them the first choice for many merchants.
In 2015, fin-tech startups have raised $1.25 billion in funding, which is more than eight times of what was raised last year.With so much money being invested in fin-tech startups it would be great to see someone coming up with more disruptive idea and technology in this sector.