Omnichannel payments platform Razorpay said its payment gateway (PG) business clocked 24% year-on-year revenue growth in FY24 at Rs 2,068 crore despite regulatory restrictions on onboarding new merchants for the first nine months of the financial year.
Razorpay, one of the first payment service providers to receive Payment Aggregator (PA) authorisation from RBI, resumed onboarding new clients on December 22, 2023. Improvements in the PG business were offset by a decrease in revenue from its other services, which fell by 34% YoY to Rs 407 crore. It reported a 9% rise in its total income to Rs 2,501 crore during the financial year from Rs 2,293 crore in FY23.
Its profit after tax increased nearly 5X to Rs 34 crore in FY24 compared with Rs 7 crore earned in the previous fiscal year, according to a press note.
Razorpay, which now claims a majority market share in India’s digital payments processing category, said its expenses during the period increased by 7% to Rs 2,454 crore, mainly driven by employee benefit expenses which contributed 25% to the total expenses.
“Over the last year, the company has witnessed significant growth via industry-first innovations, strategic acquisitions, doubling down on its omnichannel strategy, and building sustained international expansion in Southeast Asia,” stated the company.
Razorpay, which competes with Cashfree Payments, achieved an annualised total payment volume (TPV) of $180 billion.
It currently doesn’t have any public listing plans, at least till it becomes profitable “at a group level”, the company’s co-founder Shashank Kumar had mentioned earlier.
