Razorpay is only the second Indian company to be selected for mentoring by Y Combinator, which has made a $120,000 investment in the payments startup as part of its three month accelerator programme in Silicon Valley.
The Indian company is building a platform to make it easier for smaller Indian business and organisations to accept online payments. With Razorpay’s APIs, companies can add options for debit or credit card payments, or bank account transfers, using just a few lines of code.
Co-founders Shashank Kumar and Harshil Mathur hope to simplify India’s difficult online payments industry, which is mired in red tape and paperwork. Businesses looking to add online payments are often dealt with region by region, which only adds to the wait time. Other larger payment gateways such as Stripe are yet to enter the market, while PayPal has slowed its activity in India after the RBI forced users to transfer funds held in the wallet to an Indian bank account after seven days. Card penetration is also far below saturation point.
While Razorpay’s solution is going live in California, it was built in India, and the company’s co-founders intend to set their company up in Bangalore after the YC programme ends.
India’s online payments volume is doubling every two years, and is on track to be the third largest market for payments after the US and China, Y Combinator partner Kat Manalac told TechCrunch.
Whitepapers
Related reading
The latest issue of Payments [R]Evolution magazine is here
The industry-leading magazine is available to download now.
Dimebox CEO Raymundo Leefmans: “Bringing value to merchants is more important than just processing transactions from A to B.”
"Big players and traditional acquirers are struggling to get out of the commodity corner, to the point of providing agile services that allow them to be omni-channel and data-centric. That is what we provide, an opportunity to fulfill those goals."
Currencycloud secures a $25m investment from Google
The funding round totalled $61m, and will used to finance the company's global expansion plans.
Wirex, Paytm are latest digital payments companies to complete funding rounds
Monzo also revealed its latest funding round last week.
