Bengaluru-based fintech giant Razorpay is taking a bold step to pave further a better future in India’s digital person-to-merchant (P2M) payments market. It is currently valued at more than $7 billion. It has a strategic plan to go public in the next 2-3 years. It aims to achieve $750 billion in payment volumes by 2030.
Razorpay was founded by IIT Roorkee alumni Shashank Kumar and Harshil Mathur. He has already witnessed a significant achievement with an an annualized Total Payment Volume (TPV) of $150 billion. The target is to capture 15% to 20% of India’s projected $4 trillion P2M payments market by 2030.
Razorpay has seen impressive growth over the years. Its consolidated revenue surged by nearly 53% year-on-year to Rs 2,279 crore in FY2023. The success is mainly due to the rise in enterprise and small to medium-sized enterprise (SME) customers. However, its net profit for FY23 was just Rs 7.3 crore, slightly up from Rs 7.2 crore in the previous financial year. It is making significant investments in new areas such as international expansion and scaling its neo-banking services through products like RazorpayPOS and RazorpayX to support the ambitious goals.
The company is also now focusing on achieving consolidated profitability and simultaneously transitioning its parent entity from the United States to India. CFO Arpit Chug said that the company is well-funded and has patient investors. Hence, they can go ahead with the IPO process methodically and without rushing. The company has also adopted a conservative hiring approach to manage operational costs effectively. They want to avoid large-scale layoffs.
Razorpay is making use of artificial intelligence (AI) tools to enhance productivity and improving customer experience. It is soon to launch an AI assistant called Ray for e-commerce businesses.
