Razorpay FY25: Revenue Jumps 65%, IPO on the Horizon

Digital payments company Razorpay reported a 65% year-on-year (YoY) jump in its consolidated revenue to Rs 3,783 crore in the fiscal year ended March 31, 2025 (FY25), from Rs 2,296 crore in the preceding financial year.

The company said the growth in its topline was driven by its payment gateway, point-of-sale (POS) offerings, loyalty programmes, business banking suite RazorpayX, and international operations.

Despite a healthy uptick in revenue, the fintech company posted a loss in FY25 after accounting for post-ESOP expenses of Rs 1,209 crore. Razorpay attributed the loss to restructuring costs and tax payments linked to its redomiciling to India.

“Beyond online payments, which is now EBITDA-profitable and generating strong cash flows, we’re seeing promising traction in newer businesses that are rapidly scaling and unlocking new growth vectors for us,” said Harshil Mathur, Co-founder and Chief Executive Officer (CEO) of Razorpay.

The company’s gross profit surged 41% to Rs 1,277 crore during FY25 from Rs 906 crore in the previous financial year. The gross profit reflects the company’s earnings from its core operations after direct costs, while the net loss accounts for all other expenses.

It is pertinent to note that Razorpay has not yet filed its FY25 disclosures with the Registrar of Companies (RoC).

Doubling Down on AI Investments

Razorpay said it plans to accelerate product-led growth and double down on investments in its core fintech stack, focusing on AI-first products, financial infrastructure, and new verticals that add more value to partner businesses.

Earlier in October, the fintech company teamed up with the National Payments Corporation of India (NPCI) and AI major OpenAI to enable agentic payments through ChatGPT. It said it would facilitate these agentic payment services via Unified Payments Interface (UPI) Circle and UPI Reserve Pay.

At the Global Fintech Fest 2025, Razorpay also rolled out biometric authentication for card payments, eliminating the need for one-time passwords (OTPs). According to the company, 35% of payment failures in India occur due to issues such as delayed or incorrect OTPs.

The launch came on the heels of the Reserve Bank of India’s Authentication Mechanisms for Digital Payment Transactions Directions, 2025, released last month. The revised norms make two-factor authentication (2FA) mandatory for all digital payments and encourage the use of alternatives to the widely used SMS-based OTP system.

The Unique Identification Authority of India (UIDAI) has also been advocating for the use of the Aadhaar biometric database for face authentication to process high-value financial transactions.

However, as MediaNama pointed out earlier, Aadhaar-based or biometric authentication systems pose several financial and privacy risks. If biometric data is compromised, victims could be exposed to long-term threats, as hackers can use stolen fingerprints or facial templates indefinitely for unauthorised transactions and identity theft. The lack of a “reset” option for biometrics leaves users with little recourse against such breaches.

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This comes amid rising digital fraud in the country, with losses exceeding Rs 520 crore in FY25, according to data from the RBI.

IPO on the cards

Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay began its journey as an online payment gateway but later transitioned into a full-stack financial services platform. Its suite of offerings now includes AI-driven commerce and cross-border payments.

According to a recent Mint report, the company plans to enter three to four new Southeast Asian markets by the end of next year after launching operations in Singapore and Malaysia.

In May this year, the fintech company completed its reverse flip to India, which involved the merger of its US-based parent entity with its Indian subsidiary, Razorpay Software India, ahead of its plan to list on Indian bourses. Media reports suggest that the company plans to launch an initial public offering (IPO) within the next 18–24 months.

Razorpay joins a growing list of Indian fintech companies preparing for an IPO. For instance, online stockbroking platform Groww filed its updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) last month, seeking to raise about Rs 7,000 crore through an IPO.

The same month, fintech company PhonePe also filed draft IPO papers through the confidential pre-filing route to raise about Rs 12,000 crore (~$1.3 billion) at a valuation of $15 billion. Recently, the capital markets regulator cleared the IPO of Pine Labs, which had filed draft papers with SEBI for a Rs 2,600 crore IPO in June this year.

Notably, OnEMI Technology Solutions Limited, the parent company of digital lending platform Kissht, filed its DRHP with SEBI in August, seeking to raise Rs 1,000 crore via its IPO. The likes of Prosus-backed PayU India, Moneyview, and KreditBee are also said to be at different stages of their IPO preparations.

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