Payments solutions firm Razorpay has said it has raised USD 20 million in funding led by Tiger Global and Y Combinator.

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The series B round also saw participation from Matrix Partners. The company has raised USD 31.5 million till date, including from the present round.

"We will use the funds for our next phase of growth by scaling products and bolstering our technology and expanding to newer markets like South East Asia," Razorpay CEO & Co- Founder Harshil Mathur told PTI on Monday.

He added that the company has been witnessing 25-30 per cent growth month-on-month, which it hopes to continue.

The company had previously raised USD 11.5 million in series A round from the same marquee investors along with 33 angel investors, and a strategic investment by MasterCard in 2016.

"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," he said.

Founded in December 2014, Razorpay began operations by offering online businesses in India the technology to accept all payment modes. It has a team of over 130 employees. Its merchant partners include GoIbibo, Yatra, Zomato, Zoho, DSP Blackrock, Zerodha, among others.

"We have seen a strong growth in our merchant base as well, which has grown from 20,000 in 2016 to 65,000 by 2017. We expect this to grow to 2 lakh this year," Mathur said.

He added that Razorpay expects more than 10 times growth in volume and revenue by next fiscal year and predicts the newly-launched product suite to contribute 30 per cent of its revenue.

He, however, declined to comment on the revenue details and valuation of the company post the fund raise.