Leading Indian payment gateway provider Razorpay has demonstrated remarkable resilience in FY24, achieving ₹2,068 crore in revenue from its payment gateway business despite facing a nine-month RBI restriction on new merchant onboarding. The company’s performance showcases a 24% year-over-year growth and an impressive surge in net profit from ₹7 crore to ₹34 crore.
In a year marked by regulatory challenges, Razorpay has emerged stronger, with its total revenue reaching ₹2,501 crore. The company’s success in maintaining growth momentum during the RBI-imposed restriction period highlights the robustness of India’s digital payments ecosystem and Razorpay’s operational excellence.
Key Achievements:
- Payment gateway revenue: ₹2,068 crore (24% growth)
- Net profit: ₹34 crore (386% increase from FY23)
- Total revenue: ₹2,501 crore
- Current valuation: Over $7 billion
- New merchant additions: 150,000 post-restriction period
The company’s remarkable performance comes despite facing a significant hurdle when the Reserve Bank of India temporarily halted new merchant onboarding for payment aggregators from December 2022. After securing necessary approvals, Razorpay efficiently cleared its backlog, onboarding approximately 150,000 new merchants from a pool of 500,000 applicants.
Razorpay’s success story also reflects the growing digitalization of India’s financial sector. The company, which derives 75% of its revenue from payment gateway services, has maintained its market leadership position while adhering to regulatory requirements. This balance between compliance and growth has set a new benchmark for fintech startups in India.
“This achievement demonstrates the Indian fintech sector’s maturity and ability to thrive under regulatory oversight,” notes Harshil Mathur, Razorpay’s co-founder and CEO. “Our focus on compliance while maintaining growth has strengthened our position in the market.”
Impact on Indian Startup Ecosystem: The company’s performance has significant implications for India’s startup ecosystem, particularly in the fintech sector. It demonstrates that:
- Regulatory compliance and business growth can coexist successfully
- Strong fundamentals can help companies overcome temporary setbacks
- The digital payments market in India continues to offer substantial growth opportunities
- Profitability is achievable in the competitive fintech space
Looking ahead, Razorpay is well-positioned to capitalize on India’s expanding digital payments market, which is projected to reach $10 trillion by 2026. The company’s ability to maintain growth while improving profitability serves as a blueprint for other fintech startups navigating regulatory requirements and market challenges.
