Jaipur-based Razorpay Software Pvt Ltd, an online payment startup, has raised $120,000 (about Rs 74.7 lakh) in funding from US-based startup accelerator Y Combinator, according to a company statement. As a part of the deal, Y Combinator will also provide the startup with three-month acceleration.
The funds will be used for covering compliance expenses for setting up a payment gateway and product development.
The company was set up in 2013 by IIT Roorkee alumni Shashank Kumar and Harshil Mathur. Kumar had earlier worked at Microsoft, while Mathur was working at Schlumberger. Razorpay is an online payment gateway firm for small businesses, startups and other traditional SME organisations like schools, colleges and training centres.
"While setting up a crowdfunding platform, we realised that most online payment gateway solutions were extremely cumbersome. When we contacted a few payment gateway companies, we were asked for our past operational records, presence of physical offices, security deposits and very high set-up fees. And thus we came up with the idea of Razorpay," said Mathur.
Razorpay is only the second India-focussed company to get incubated at Y Combinator, the first one being Cleartax.
In the country, the firm competes with some of the heavily funded players such as Citrus, CCAvenue and MobiKwik.
(Edited by Joby Puthuparampil Johnson)