Razorpay Slips Into Red In FY25, Revenue Zooms 65% YoY

SUMMARY

Razorpay slipped into losses in FY25 due to a post-ESOP expense of INR 1,209 Cr tied to its reverse flip to India, even as operating revenue surged 65% YoY to INR 3,783 Cr

After completing its reverse flip in March 2025 and becoming a public entity in April, Razorpay is eyeing an IPO within FY27

The company expects its India business to be profitable by FY26 and consolidated profitability two to three quarters later

Despite a robust uptick in its top line, fintech major Razorpay slipped into the red in the fiscal year FY25. While the IPO-bound company refrained from disclosing the exact loss numbers, it said that it incurred an ESOP expense of INR 1,209 Cr in the fiscal year.

In a statement, Razorpay said that besides ESOP costs, it also incurred one-time cost related to restructuring and tax payments linked to shifting its corporate domicile to India. It was earlier reported that these reverse flip expenses could soar as high as INR 1,245 Cr (around $150 Mn).

Despite posting a loss in the fiscal, the company claimed that its operating revenue surged 65% YoY to INR 3,783 Cr in FY25 from INR 2,296 Cr in the previous fiscal year. Further, it said that its gross profit increased 41% to INR 1,277 Cr in FY25, from INR 906 Cr in the previous year. Important to mention that Razorpay is yet to file its annual disclosures with the Registrar of Companies (RoC).

“We delivered top-line growth through strong execution, while simultaneously improving our gross margins. Beyond online payments, which is now EBITDA profitable and generating strong cash flows, we’re seeing promising traction in newer businesses that are rapidly scaling and unlocking new growth vectors for us,” Razorpay’s CEO and cofounder Harshil Mathur said.

In conversation with Inc42 during GFF 2025, CFO Arpit Chug said that the company’s India business is expected to become profitable in the next one financial year, while the international business is expected to be in the black in next 2-3 quarters.

“By the end of FY26, our India business should be solidly profitable. At the consolidated level, we’ll reach profitability about two to three quarters after that,” he said.

To attain profitability, Razorpay intends to double down on investments in AI-first products, financial infrastructure, and new verticals that enhance value for its partner businesses. Besides, the company is also looking to expand into Southeast Asia, including Malaysia and Singapore and investing heavily in fintech infrastructure and AI-driven products.

Razorpay has also set up a team in the US, focussed mainly on cross-border business between India and the US, CFO Chug noted.

The financial disclosures come at a time when Razorpay is eyeing an initial public offering (IPO) in India in the near future. After completing its reverse flip to India in March 2025, the company converted into a public entity in April.

CFO Chug said that Razorpay is now eyeing a public listing within FY27.

Chug also said that the IPO will be reasonably large, largely because of the 10% minimum dilution requirement. “There’s also a chance we could have some secondary transactions before the IPO, which might reduce the need for OFS,” said Chug.

Notably, a 10% minimum dilution requirement for an IPO applies to companies with a post-IPO market capitalisation between INR 4,000 Cr and INR 1 Lakh Cr. Under current rules, these companies must offer at least 10% of their equity to the public during the IPO and are required to achieve 25% public shareholding within three years of listing.

Founded in 2014 by Mathur and Shashank Kumar, Razorpay is a full-stack financial services company which initially started as a payment gateway aimed at making online payments simple and affordable for startups and SMBs but later evolved into a comprehensive digital payments and banking platform.

Razorpay now serves over 8 Mn businesses across India, providing solutions that cover the entire money flow within organisations—from payment acceptance to disbursals, lending, and business banking. In its over a decade long journey, the company has expanded its offerings via products like RazorpayX (neo-banking) and Razorpay Capital (lending), and integrations with government-backed initiatives like ONDC to support India’s digital commerce ecosystem.

It had raised $741.5 Mn from investors like Y Combinator, Lightspeed, Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Peak XV Partners, Ribbit Capital, among others.