Razorpay, an Indian payments firm set up in 2013, has raised $20m in a Series B funding round led by Tiger Global and Y Combinator.
Y Combinator made its investment through its Y Combinator Continuity Fund. Matrix Partners also participated in the funding round. All the three investors in the latest funding round are existing backers of the firm.
Razorpay CEO Harshil Mathur said that the company plans to use the capital to expand its product line and deploy its product in new markets.
“In the past one year, Razorpay has clocked in a healthy growth rate of 40-50% month-on-month and we are on course to impacting lives of 500 million end consumers by 2020. We expect more than 10x growth in volume & revenue by the next fiscal year and our new products should contribute to at least 30% of our revenue,” Mathur noted.
The firm previously raised $11.5m, which included an investment from payments firm Mastercard.
“The SaaS market in India is expected to grow to about $1bn in 2020. The impetus provided to sectors like FinTech, in particular, by demonetization, increased connectivity & financial literacy could propel this growth even further. And at Razorpay we want to be at the forefront of making a good SaaS product for India, in India,” Mathur added.