India-based online payments technology provider Razorpay has closed a $20m Series B led by Tiger Global and Y Combinator.
Matrix Partners also took part in the funding round, with all three firms having previously invested in the company.
Y Combinator used its Continuity Fund to make the investment. The firm uses the vehicle to back companies with a post-money valuation of $300m or below, making investments between $15m and $50m.
Founded in 2014, the company provides businesses with technology to?allow?online payment acceptance. Through the solution, clients are able to access over 100 payment modes, in a complaint and secure platform which is easily integrated.
Razorpay enables businesses to add payment systems to their websites, create and send invoices and ?share payments via a link in communication platforms.
Over the past year, the company has seen a MoM growth rate of 40 to 50 per cent and expects to hit over 10-times growth in volume and revenue by the end of the next fiscal year.
Razorpay is expecting its new products to contribute up to 30 per cent of its revenue. These solutions include Route, which helps education and retail businesses manage money distribution across regional profit-centres, Razorpay Subscriptions a platform for automating monthly SIP payments, and Smart Collect which helps real estate and rental companies manage rent payments.
Using this new line of capital, Razorpay hopes to expand its presence to new markets and verticals, as the company looks to enable management of complex and business critical money flows.
This funding round brings the company total funding efforts up to around $31m, with the company closing a $9m round in 2015.
Earlier this month, Tiger Global led the $75m funding round in to robo-advisor platform WealthFront. The firm was joined by investors including Benchmark Capital, DAG Ventures, Greylock Partners, Index Ventures and Ribbit Capital, among others.
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