Razorpay, a leading fintech platform in payments and business banking, saw its Payment Gateway (PG) business achieve a 24% year-on-year (YoY) revenue growth in FY24, even amid a temporary pause on new merchant registrations for the first three quarters of the fiscal year. Impressively, the company’s profit after tax (PAT) increased nearly fivefold in the same period.
As per Razorpay Software Private Limited (RSPL), the division managing the Payment Gateway business, revenue for this segment reached Rs 2,068 crore, contributing to a total income of Rs 2,501 crore for the fiscal year.
In comparison, FY23 saw Razorpay’s collective revenue—including both payment gateway and other operations—at Rs 2,293 crore. This year marked the first instance of RSPL reporting revenue solely from the PG business, providing focused insights into its performance.
On December 22, 2023, Razorpay resumed onboarding new merchants after receiving the RBI’s Payment Aggregator (PA) authorization, positioning it as one of the initial platforms to secure this regulatory clearance. This development significantly contributed to a 4.7X rise in profit after tax, with the company reporting a PAT of Rs 34 crore in FY24, up from Rs 7 crore in the previous fiscal year.
The company credits this surge to its commitment to product innovation, rolling out over 40 new solutions that deepened its reach and engagement with current clients. Razorpay also reported an annualized Total Payment Volume (TPV) of $180 billion, underscoring its market impact.
Total expenses for the fiscal year experienced a 7% YoY increase, reaching Rs 2,454 crore, with employee-related expenses—comprising salaries and benefits—amounting to approximately Rs 611 crore, or 25% of total costs.
Looking ahead, Razorpay plans to drive growth by expanding into Southeast Asian markets and implementing a broader omnichannel approach. With over $800 million raised in various funding rounds, the company’s latest valuation stands at approximately $7 billion. It remains in competitive standing with Cashfree, which reported FY23 revenue of Rs 614 crore, and PayU, whose FY23 revenue totaled $400 million (Rs 3,320 crore). The FY24 figures for these competitors are still pending release.