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razorpay

Payment gateway Razorpay has raised $9 million in a series A round of funding led by Tiger Global and participation from Matrix Partners. The company also announced an earlier round of seed funding of $2.5 million which includes 33 investors.

The seed fund investors includes Matrix Partners, Y Combinator, Kunal Bahl & Rohit Bansal (Snapdeal founders), Punit Soni (Flipkart CPO),  Amit Gupta & Naveen Tewari (Inmobi founders), Kunal Shah & Sandeep Tandon (Freecharge founders).

Backed by Silicon Valley incubator Y Combinator, Razorpay was founded in 2014 by Harshil Mathur and Shashank Kumar. The company claims to have over 1,800 customers which includes startups such as RoadRunnr, Lookup, Gozefo, Innerchef, Teen Patti Gold, LocalOye, UrbanPiper, Instafeez, Neostencil, and Chai Point.

Razorpay accepts and validates Internet payments via credit/debit cards, net banking and popular digital wallets from the end customers in real-time. It also provides a secure link between merchant website, various issuing institutions, acquiring banks and other payment networks. The company says that it targets startups, small businesses and SMEs and added that they can setup online payments through their SDKs in 20 minutes.

Razorpay charges 2.5% per successful transaction for its free account, and 2% per successful transaction for its business account which costs Rs 5000 per year.

Competition

– Earlier this month, Citrus Payment Solutions raised an undisclosed amount Series C funding  and acqui-hired the payments startup Zwitch for an undisclosed amount. Following the deal, founders Anish Achutan and Mabel Chacko will be joining Citrus Pay along with the core members of Zwitch.

– Other players include Naspers-owned PayU, CCAvenue and MobiKwik in India.

– Globally it competes with established players such as MasterCard and Visa. In August, Visa set up a technology centre in Bangalore and said it would develop a new payment service for mobile phones called mVisa.