Fintech Giant Razorpay Records 4.85X Jump In PAT, Operating Revenue Rises By 9%

Neha KamathOctober 31, 2024

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Three points you will get to know in this article:

Razorpay reported operational revenue of INR 2,501 Cr for the fiscal year ending March 2024 (FY24), up 9% year on year from INR 2,293 Cr the previous fiscal year.
The company’s profit after tax (PAT) increased to INR 34 crore in FY24 from INR 7 crore the previous year.
The Sequoia-backed startup’s total expenses increased by 7% year on year to INR 2,454 crore in FY24.

Razorpay Releases FY24 Results, Charts Impressive Revenue, Profit Numbers

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.

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.

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 large fintech company’s profitability increased. The company’s profit after tax (PAT) increased by 4.85 times to INR 34 crore in FY24, up from INR 7 crore the previous year.

Razorpay’s Expenses, Costs

The Sequoia-backed startup’s total expenses increased by 7% year on year, totalling INR 2,454 Cr in FY24.

Furthermore, the company’s staff expenses reached INR 611 Cr, accounting for 25% of overall expenses due to increasing head count and employee payouts.

Razorpay developed 40 new products in FY24, with excellent acceptance across sectors. The business attained an annualized total payment volume (TPV) of $180 billion, establishing its dominance in India’s digital payments market.

Razorpay Plans, Latest Developments

Razorpay is one of the Indian software businesses preparing to return to India. It is expected to relocate its headquarters to India from the United States by the end of this year.

Earlier this year, the company’s offline payments subsidiary, Razorpay POS, introduced a new payment system called ‘Q-Zap’ for offline businesses to minimize billing time.

At the time, the business claimed that the suite could help retailers cut in-store billing time by 40% while saving up to 20% on annual operating costs.

Razorpay also introduced immediate reimbursements for failed Unified Payments Interface (UPI) transactions earlier this year in an effort to increase PoS use.