Razorpay says payment gateway business grew 24% in revenue in FY24

Fintech company reports growth despite restriction on taking in new customers

Fintech firm Razorpay has said revenue from its payment gateway business grew 24 per cent year-on-year (Y-o-Y) in the first nine months of FY24, overcoming restrictions on on-boarding new merchants.

 

Gateway services revenue was Rs 2,068 crore in FY24, compared to Rs 1,665 crore in FY23. Razorpay resumed on-boarding new merchants on December 22 last year, becoming one of the first payment gateways to get permission from the Reserve Bank of India.

 

Profit after tax grew 4.7x to Rs 34 crore in FY24, compared to Rs 7 crore in FY23. According to the audited financials, Razorpay reported a total income of Rs 2,501 crore in FY24 (payment gateway contributed Rs 2,068 crore). Razorpay attributed the revenue growth to deeper penetration of its existing businesses and new product offerings. The company launched more than 40 products when on-boarding was on hold, saying it witnessed wide adoption and scale across sectors.

 

 

The company achieved an annualised total payment volume (TPV) of $180 billion. Razorpay said it has become the market leader in the digital payments processing category.

 

Total expenses increased by 7 per cent Y-o-Y to Rs 2,454 crore in FY’24. Employee benefit expenses, which comprise salaries and other payouts, comprised around 25 per cent of the total expenses at Rs 611 crore.

 

The firm said its financial performance in FY24 demonstrates “solidity, strategic investment and operational focus”. Over the last year, the company said it has witnessed growth via industry-first innovations, strategic acquisitions and “doubling down” on an omnichannel strategy. It is also building sustained international expansion in Southeast Asia.