Razorpay payment gateway biz crosses Rs 2,000 Cr revenue in FY24, PAT soars 5X

Payments and business banking platform Razorpay reported a 24% year-on-year (YoY) revenue increase for its Payment Gateway (PG) business, despite facing a temporary hold on new merchant onboarding during the first nine months of the fiscal year. Significantly, the firm’s profit after tax surged nearly 5X in the same period.

According to the firm’s press release, Razorpay Software Private Limited (RSPL) which houses Payment gateway biz generated Rs 2,068 crore in revenue. During this period, its total income stood at Rs 2,501 crore.

During FY23, the company’s overall revenue stood at Rs 2,293 crore (including payment gateway and others). Unlike previous fiscal years, the company reported revenue from its Payment Gateway (PG) business alone in Razorpay Software Private Limited (RSPL).

Razorpay resumed onboarding new merchants on December 22, 2023, following RBI’s Payment Aggregator (PA) authorization, making it one of the first platforms to secure this regulatory approval. As a result, the fintech unicorn achieved a significant 4.7X increase in profit after tax. It posted PAT of Rs 34 crore in the last fiscal year from Rs 7 crore in FY23.

The company attributed the growth to a focus on product innovation, launching over 40 new solutions that enhanced service penetration among existing customers. Razorpay also claimed to reach an annualized Total Payment Volume (TPV) of $180 billion.

The company’s total expenses rose modestly by 7% YoY to Rs 2,454 crore. Employee benefits, including salaries and other compensations, comprised around 25% of the expenses, amounting to Rs 611 crore.

The firm is now eyeing further growth through international expansion in Southeast Asia and a sustained omnichannel strategy. 

Razorpay has secured over $800 million through various funding rounds and was last valued at approximately $7 billion. It competes with Cashfree, which reported revenue of Rs 614 crore in FY23, and PayU, which reached a revenue scale of $400 million (3,320 crore) in the same fiscal year (FY23). Their FY24 results are yet to be announced.