Razorpay Collects $9 Million in Series a Funding Round, Targets India

Razorpay, a financial technology startup, is out to revolutionize India’s saturated payments space.

Earlier this month, the group raised $9 million in a Series A funding round led by Tiger Capital. Matrix Partners, a global venture capital firm, led the company’s previous seed round worth $2.5 million, along with 33 angel investors.

“We believe that the online payments infrastructure in India has not developed at the same pace as the rest of the e-commerce and m-commerce eco-system,” said Harshil Mathur, alumni of IIT-Roorkee and co-founder of Razorpay.

The startup hopes to capitalize on a region where Stripe has seen little success in. At the moment, the wildly popular US-based payment system is not suitable for SMBs based in India. In most cases, individuals are forced to go through a tedious verification process before getting the go signal to start using the brand’s products.

Razorpay’s primary objective is to streamline online onboarding for local businesses. It currently provides Android and iOS SDKs integrations for mobile transactions. Clients also have the option to use the startup’s fresh templates and analytics dashboard for a complete out-of-the-box experience.

For now, the look and feel of the checkout process does look very similar to Stripe’s offerings. But the startup does provide several advantages over its competition. It caters to a range of local banks (as well as international institutions), digital wallets and payment service providers, such as Paytm and MobiKwik.

“We are building the next generation payments infrastructure which will accelerate the future e-commerce growth in India. Our patented technology will greatly help in achieving higher transaction success rates and faster checkout time especially on mobile devices while making payment gateway integration as easy as embedding a few lines of code,” highlighted Shashank Kumar, co-founder of the startup.