Mumbai: Online payment solutions company Razorpay Software Pvt. Ltd said on Tuesday that it has raised $9 million in a series A round of funding led by Tiger Global with participation from Matrix Partners.

The company had earlier raised a seed funding of $2.5 million from Matrix Partners and angel investors including founders of Snapdeal Kunal Bahl and Rohit Bansal; Inmobi founders Abhay Singhal, Amit Gupta and Naveen Tewari; and Freecharge founders Kunal Shah and Sandeep Tandon. It has raised $11.5 million in funding so far.

Razorpay authenticates and accepts payments made through credit, debit cards, Internet banking and digital wallets by providing a secure link between merchants and users. It has over 1,800 customers so far.

The Jaipur-based company that was founded in 2014 by Shashank Kumar and Harshil Mathur is looking to use the funds for scaling up the product, hiring larger teams and strategic partnerships in the online payments industry.

“Digital payments is a very large opportunity and it is still early days for the industry in India. Transaction success rates are still very low and it is still difficult for smaller merchants to accept online payments. We remain extremely positive on Fin-Tech in India and will take multiple bets in the space," said Vikram Vaidyanathan, managing director, Matrix India in a statement.

“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 check-out time especially on mobile devices while making payment gateway integration as easy as embedding a few lines of code," said co-founder Kumar.

In 2015, Mumbai-based mobile payment services provider Mswipe Technologies Pvt. Ltd has raised $25 million; Bengaluru-based Ezetap Mobile Solutions Pvt. Ltd has raised 150 crore; Chennai-based recurring billing solutions provider ChargeBee Technologies Pvt. Ltd has raised $5 million from Tiger Global; and digital wallet company One Mobikwik Systems Pvt. Ltd has raised 155 crore and is in talks to raise another $50 million-100 million in the next 3-6 months according to a Mint report in October.

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