Payment gateway Razorpay has raised Series B funding of $20 million led by its existing investors Tiger Global and Y Combinator along with participation from Matrix Partners, announced its co-founder Harshil Mathur in a blogpost. The company will use the funding money to expand its reach into new markets and verticals.

Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay is an online payment gateway which allows Indian businesses to collect payments online through credit card, debit card, netbanking and wallets like JioMoney, Mobikwik, PayUmoney, Airtel Money, FreeCharge, Ola Money and PayZapp.

The company claims that it has clocked growth of 40-50% month-on-month in one year and said that it expects 10x growth in volume & revenue by the next fiscal year. In terms of users, the company expects to have 500 million end consumers by 2020.  It said in its blog that the company is seeing growth from conventionally cash-heavy industries, like logistics, travel, consumer electronics, financial services and education etc.

Mathur said in the blogpost that its new products should contribute to at least 30% of Razorpay’s revenue. In November, Razopay launched a new product suite which help customers to manage marketplaces, collect payments through NEFT, RTGS and IMPS, recurring payments and products to generate invoices and payment links.

We have reached out to Mathur for more information, and we will update as soon as we hear back from him.

Previous Funding

In July 2016, Mastercard made an undisclosed investment in the company. As a part of the investment, Razorpay said it would internationally to countries such as Indonesia, Philippines, Malaysia, Myanmar, Saudi Arabia and UAE and MasterCard will be helping the company with partnerships with local banks. Prior to that, it had raised series A  funding of $9 million led by Tiger Global and participation from Matrix Partners in 2015. At the same time, it had secured seed funding of $2.5 million from 33 investors including  Y Combinator, Kunal Bahl & Rohit Bansal (Snapdeal founders), Punit Soni (ex-Flipkart CPO),  Amit Gupta & Naveen Tewari (Inmobi founders), Kunal Shah & Sandeep Tandon (Freecharge founders).