Payment solution startup Razorpay has announced today that it has raised $20 million in a funding round led by Silicon Valley-based accelerator Y Combinator's YC Continuity Fund and existing investor Tigers Global. Another existing investor Matrix Partners also participated in the round, reported Times of India.

Bengaluru headquartered Razorpay plans to use the freshly raised funds to push new products which it launched in September last year including facilities like recurring payments, automation of bank transfers like NEFT, and invoice management as part of its new strategy under Razorpay 2.0. "We are looking to expand our team and hire heads for new business verticals. About 50% of new hires will be in technology and the product teams while the rest would be for business roles," said Harshil Mathur, co-founder & CEO, Razorpay to a daily newspaper. At present it has about 130 people and it could hire over 70 people during this year. Mathur said the company, as part of new strategy, is looking to generate at least 30% of company's revenue from these new launches.

The latest round takes the total amount the startup has raised to $31.6 million, according to the data by Crunchbase.

The company last raised undisclosed funding from American payments and financial services company MasterCard, in July 2016. At the same time, the startup also become the second Indian company to be selected for the US-based Y-Combinator accelerator programme.

Razorpay has 33 angel investors including Kunal Bahl and Rohit Bansal (Snapdeal founders); Abhay Singhal, Amit Gupta and Naveen Tewari (InMobi founders), Kunal Shah and Sandeep Tandon (Freecharge founders), former chief product officer of Flipkart Punit Soni, Ram Shriram (board member and an early investor in Google), Justin Kan (Y Combinator partner and Twitch founder).

Founded in 2013 by Harshil Mathur and Shashank Kumar, Razorpay aims to on-board new merchants and increase the base to about 2 lakh by the end of 2018. It claimed to have grown at a rate of about 30-35% per month and has about 65,000 merchants on its platform.

Last month, Facebook co-founder Eduardo Saverin led a $40 million Series D round of funding in Mswipe Technologies, a payment solution startup headquartered in Mumnai. With thid Eduardo marked his first foray into the India startup market.

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