Razorpay, a Bengaluru-based fintech company, reported revenue of Rs 2,068 crore for the FY24, marking a 24% growth from the previous year. The company’s net profit also rose sharply to Rs 34 crore from Rs 7 crore in FY23, showcasing its resilience and effective growth strategies.
Payment Gateway as the Core Business
The payment gateway segment remains Razorpay’s primary revenue driver, contributing to 75% of total revenue. This segment has been key in fueling the company’s growth, despite recent regulatory restrictions. Razorpay total income reached Rs 2,501 crore, with expenses of Rs 2,454 crore in FY24, a steady increase compared to FY23.
Overcoming RBI Restrictions
Razorpay faced a nine-month ban from the Reserve Bank of India (RBI), which temporarily halted the onboarding of new merchants. This restriction, imposed in December 2022, impacted payment aggregators like Razorpay, Cashfree, and Paytm, until they obtained their final licenses.
The restriction was lifted for Razorpay in December, and the company resumed onboarding merchants in July 2023. Since then, Razorpay has added 150,000 new merchants from a waitlist of approximately 500,000, showcasing its popularity and market demand.
Strategic Acquisitions
Razorpay’s success can be attributed to strategic acquisitions and its shift towards an omnichannel business approach. In September 2023, Razorpay acquired Mumbai-based BillMe to expand its offline business, following the acquisition of the point-of-sale startup Ezetap in 2022. These acquisitions have strengthened its presence both online and offline, making it more resilient in challenging times.
Rising Total Payment Volume
Razorpay’s total payment volume reached USD 180 billion in FY24, a significant indicator of the company’s expanding customer base and efficient service offerings. Backed by major investors like Tiger Global, Razorpay’s diversified business strategy has allowed it to grow despite regulatory hurdles, cementing its place as a leading player in India’s fintech landscape.
