Razorpay

Razorpay is a leading Indian financial technology company that provides comprehensive, end-to-end digital payment and business banking solutions for organizations of all sizes. Its core mission is to simplify and streamline the way businesses accept, process and disburse payments, manage banking and access credit—all from a single, unified platform.

Core Products and Services

• Payment Gateway: Accepts online payments via cards, UPI, net banking, wallets and more.

• Payment Links & Buttons: Easy ways to collect payments by sharing a link or adding a button on websites.

• Payment Pages: Custom-branded online payment pages for businesses.

• Razorpay POS: Point-of-sale solution for in-store payments.

• RazorpayX: Business banking platform for current accounts, payouts and payroll management.

• Payouts: Bulk payouts and instant settlements for vendors, employees, or partners.

• Subscription Management: Tools for handling recurring payments and subscriptions.

• Forex and Escrow: Foreign exchange management and secure escrow accounts for business transactions.

Key Milestones 

• Annualized TPV Milestone: Reached $150–180 billion in annualized total payment volume, making it a market leader in digital payments processing.

• Merchant Growth: Onboarded over 8 million merchants by 2023, up from 6.5 million in 2022.

• Funding and Valuation: Raised $741.5 million across funding rounds and achieved a $7.5 billion valuation.

• Profitability: Became profitable with $48 million net profit in FY2025.

• Product Innovation: Launched Payment Gateway 3.0, Dynamic QR Soundbox, and RazorpayX Payroll, used by over 25,000 businesses.

• International Expansion: Expanded into Southeast Asia and the Middle East.

• Employee Success: Conducted multiple ESOP buybacks, including a $75 million buyback in 2022 and offered ESOPs to all employees.

• Industry Recognition: Named among the top 10 fintech companies in Asia.

Business Model & Revenue Streams

• Transaction Fees: Main revenue stream; charges a small percentage (typically 1.8%–3% for local, 3%–5% for international) for every payment processed.

• Subscription Plans: Earns recurring income from businesses paying for premium features, advanced analytics and priority support.

• Value-Added Services: Generates revenue from neobanking (RazorpayX), business loans (Razorpay Capital) and recurring billing management.

• Other Revenue: Includes fees for developer tools, marketplace payments, fraud prevention and cross-border transactions.

The business model is B2B, serving startups, SMEs and enterprises with integrated digital payment and banking solutions.

Top Clients & Partnerships

• Major Clients: Leading brands like Swiggy, Zomato, CRED, Urban Company, Mamaearth, Nykaa, Lenskart and Meesho use Razorpay for payments and banking.

• E-commerce Platforms: Strong integration with Shopify, WooCommerce, Magento, BigCommerce and Dukaan—serving a large share of India’s online stores.

• Enterprise Partners: Collaborations with large enterprises such as Tata AIA, Voltas, Udaan, Axis Bank and ICICI Bank for customized solutions.

• Startup Ecosystem: Powers payments for over 60% of India’s tech startups, including unicorns and high-growth ventures.

• International Expansion: Strategic partnerships in the Middle East and Singapore for cross-border payments and merchant onboarding.

• Client Diversity: Serves micro, small, medium and large businesses, reducing dependence on any single industry or client.

Future Outlook & Strategic Priorities

• Growth Drivers: Targeting 40–50% annual growth through expansion in payments, neo-banking (RazorpayX), and loyalty/gifting solutions; international expansion (Malaysia, Singapore, Middle East) and new AI-powered products.

• Product Innovation: Focus on AI-driven features for security, automation, and customer experience; launching new tools like Magic Checkout, Appmaker and OTP Assist.

• IPO Plans: Preparing for a public listing in 2026, aiming for $1 billion in revenue by 2030.

• Omnichannel & Offline Push: Expanding in-store payment solutions (DigiPOS) and omnichannel experiences to capture more offline and quick commerce markets.

• Risk Management: Adapting to regulatory changes (e.g., full KYC requirements), investing in compliance and diversifying revenue beyond core payments.

• Strategic Priorities: Strengthening enterprise integrations, scaling value-added services, and maintaining strong investor and customer relationships.