Razorpay Reports Rs 2,068 Crore Revenue in FY24

Razorpay’s payment gateway business has recorded an impressive revenue of Rs 2,068 crore for the fiscal year ending March 2024, reflecting a robust 24 per cent growth. This achievement comes in the wake of restrictions imposed by the Reserve Bank of India (RBI), which prevented the company from onboarding new merchants for nine months.

Valued at over USD 7 billion, the Bengaluru-based fintech reported a net profit of Rs 34 crore, a significant rise from Rs 7 crore in FY23. The payment gateway segment, responsible for 75 per cent of Razorpay’s total revenue, has been a key driver of this success.

In FY24, Razorpay's total income reached Rs 2,501 crore, with expenses amounting to Rs 2,454 crore, compared to FY23, which saw revenues of Rs 2,293 crore and expenses of Rs 2,283 crore.

The RBI had temporarily halted the onboarding of new merchants for payment aggregators like Razorpay, Cashfree, and Paytm in December 2022 until they secured final licenses. However, the central bank lifted the ban on Razorpay and Cashfree in December last year, allowing them to resume operations. After a seven-month pause to clear the backlog, Razorpay successfully onboarded 150,000 new merchants from an interested pool of approximately 500,000.

Razorpay’s resilience during this period can be attributed to strategic acquisitions and an omnichannel approach, effectively mitigating the impact of regulatory challenges. The startup, backed by Tiger Global, has been actively acquiring companies, including the recent purchase of Mumbai-based BillMe in September 2023 to enhance its offline operations, following the acquisition of point-of-sale startup Ezetap in 2022.

The company's total payment volume soared to USD 180 billion in FY24, highlighting the success of its diversified business strategy.