Razorpay’s payment gateway business reported a 24% revenue growth to ₹2,068 crore for the fiscal year ended March 2024, overcoming the Reserve Bank of India’s (RBI) restrictions that barred it from onboarding new merchants for nine months.
The Bengaluru-based fintech, valued at over $7 billion, reported a net profit of ₹34 crore—sharply up from ₹7 crore in FY23, according to filings with the Registrar of Companies (ROC). Its payment gateway segment, which contributes 75% of the firm’s total revenue, led this performance.
Razorpay’s total income in FY24 stood at ₹2,501 crore with expenses amounting to ₹2,454 crore, compared to FY23 figures of ₹2,293 crore in revenue and ₹2,283 crore in expenses.
In December 2022, the RBI temporarily halted new merchant onboarding for payment aggregators like Razorpay, Cashfree, and Paytm until they secured final licenses. The central bank lifted the ban on Razorpay and Cashfree in December last year after they obtained fresh approvals.
After a pause of about seven months after obtaining the licence, the company completed onboarding the backlog of merchants that had applied for its services. The company onboarded as many as 150,000 new merchants out of about 500,000 that showed interest during the ban.
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Razorpay attributes its resilience to strategic acquisitions and an omnichannel approach, shielding it from regulatory disruptions. The Tiger Global-backed startup has been on an acquisition spree, purchasing Mumbai-based BillMe in September 2023 to strengthen its offline operations, following its 2022 acquisition of point-of-sale startup Ezetap.
The company’s total payment volume surged to $180 billion in FY24, underscoring the effectiveness of its diversified business strategy.
Currently in the process of relocating its domicile back to India by FY25, Razorpay is backed by high-profile investors, including Lone Pine Capital, GIC, TCV, and Salesforce Ventures, with total funding reaching $741.5 million across multiple rounds.
Founded in 2014 by Harshil Mathur and Shashank Kumar, the Bengaluru-based company last raised $375 million in 2021, led by Lone Pine Capital, Alkeon Capital, and TCV, with participation from existing investors.
