WePay Raises $10 Million To Scale Its Online Payment Platform

Online payment platform WePay just announced that it has raised $10 million in a new financing round. This round was led by Ignition Partners. Two of the company’s existing investors, Highland Capital Partners and August Capital also participated in this round. WePay, which bills itself as the “anti-PayPal,” is a Y Combinator alumni and was founded in 2008. The company raised a total of $9.15 million in two previous rounds over the last two years. In today’s announcement, WePay notes that this is a growth round and is meant to allow it to scale its technology and workforce.

While WePay doesn’t reveal its revenues, its CEO and co-founder Bill Clerico told our own Leena Rao that it grew revenue ten-fold in 2011. The Palo Alto-based company has about 40 employees and expects to significantly grow this number in 2012.

WePay currently offers a range of payment products that are mostly geared toward the small and medium online businesses. The company’s tools currently focus on four use cases: selling products online, selling tickets, accepting donations and sending bills to request payments. Merchants can use WePay’s tools to set up online stores and embed them on their own sites.

WePay plans to launch its first mobile apps later this year, though the company remains mum about what exactly its mobile strategy will look like. Chances are, though, that this will put it into even more direct competition with PayPal and the various other startups and existing players that are vying for attention in this space.