Razorpay Logs 4.85X Increase In PAT, Revenue Up By 9%

Bengaluru-based fintech unicorn Razorpay reported an operating revenue of INR 2,501 Cr for the financial year ending March 2024 (FY24), marking a 9% year-on-year growth from INR 2,293 Cr in last fiscal year. 

Notably, the company primarily generates revenue through commission fees on its payment gateway services.

The company booked INR 2,068 Cr from its payment gateway services business– up by 24% from INR 1,665 Cr in FY23. 

Meanwhile, the fintech major saw a jump in profitability. The company’s profit after tax (PAT) soared to INR 34 Cr in FY24 from INR 7 Cr in the previous year, recording a 4.85X growth. 

The Sequoia-backed startup’s total expenses grew by 7% YoY, totaling INR 2,454 Cr in FY24.

Also, the company’s employee expenses reached INR 611 Cr, contributing 25% to total expenses, attributed to increased headcount and employee payouts.

Over FY24, Razorpay introduced 40 new products, seeing strong adoption across sectors. The startup achieved an annualised total payment volume (TPV) of $180 Bn, cementing its leadership in India’s digital payments market.

Founded by Shashank Kumar and Harshil Mathur in 2014, Razorpay has raised over $740 Mn, with notable investors including GIC, Tiger Global, and Lightspeed Ventures. Its latest funding round in December 2021 raised $375 Mn at a valuation of $7.5 Bn.

Razorpay is among the Indian tech startups preparing to reverse flip to India. It is likely to shift its headquarters to India from the US by the end of this year.

Earlier this year, the company’s offline payments arm Razorpay POS launched a new payment solution ‘Q-Zap’ for offline retailers to reduce billing time.

At the time, the startup claimed that the suite can help merchants reduce in-store billing time by 40% and save up to 20% in annual operating costs.

Earlier this year, Razorpay also launched instant refunds for failed Unified Payments Interface (UPI) transactions to further push PoS adoption.