New Delhi: Online payment solutions company Razorpay Software Pvt. Ltd has raised $20 million in a Series B round led by Tiger Global and Y Combinator, along with participation from Matrix Partners, the company said in a statement on Monday.

Razorpay will use the funds to scale up Razorpay 2.0, its suite of payment products for businesses. It will also look at growing its technological capabilities, expanding its payments products to clients in new sectors and hiring new talent.

While unveiling Razorpay 2.0 in September, the company said that it was shifting from being a payment gateway provider to a comprehensive payments platform for small businesses and firms. It expects the newly launched product suite to contribute 30% of its revenue in this fiscal year.

Founded in 2014 by Shashank Kumar and Harshil Mathur, the company enables businesses to accept online payments via credit/debit cards, net banking, wallets and the Unified Payments Interface. Razorpay competes with other payment gateway providers like CCAvenue, Instamojo, Citrus Pay and PayUbiz.

The current round brings the total funding the company has received to $31.5 million. It had previously raised $11.5 million in a round last year, and also secured a strategic investment from Mastercard in 2016.

“The idea we are promoting with Razorpay is that there will be one comprehensive and innovative product that will manage the entire money movement for India’s huge underserved business community. The cash-heavy traditional sectors and new age businesses require comprehensive and powerful products that enable more than just payment acceptance and help them scale money movement through technology. And it is these sectors which we believe will lead the next phase of surge in digital payments in India," Mathur, chief executive officer of Razorpay, said in a statement.

The company said it caters to over 65,000 businesses including Goibibo, Yatra, Zomato and Zoho. It plans to grow its merchant base to 200,000 by the end of 2018. It claims to clock 25-30% month-on-month growth in terms of revenue and expects to grow 10-fold in terms of volume and revenue by next fiscal year.