In-store or offline payments processed through fintech unicorn Razorpay grew 88 percent in FY23 by value across most metros while Gurugram, Pune, Bengaluru, Chennai and Kolkata were among the top five states, indicating an uptick in demand for offline retail in India.
Gurugram saw a growth of around 161 percent year-on-year (YoY), Pune around 154 percent YoY, and Bengaluru at around 145 percent YoY in in-store payment volumes clocked on Razorpay’s offline payments platform, Ezetap, shows a report titled The Razorpay Payments Report 2023 released on April 11.
Razorpay witnessed a spike in co-working space spending of 245 percent in transaction terms while the number of payments made for cab services grew seven times during the financial year 2023 indicating a shift from a work-from-home culture that became a new norm during the Covid-led lockdowns in India.
“The biggest shift we noticed was that broadband spending dropped by almost 80 percent ...India Inc. was definitely spending more time outside with coworking spaces,” the report said.
This report was based on transactions held on the Razorpay platform between April 2022 and March 2023 and the growth percentages are a comparison between FY23 and FY22.
"FY’23 has been a year of hope, resilience, and rejuvenation for India, with a sharp growth in transactions across sectors as people rekindled old-forgotten joys of life. It also showed how Indians have embraced the digital age and how they are using new payment technologies to connect, collaborate, and transact,” said Rahul Kothari, Chief Business Officer, of Razorpay.
Spends on entertainment and travel are on a rise, the report said.
Razorpay also saw multiplex movie spending rise by around 173 percent in FY23. Spends on flight tickets grew by 83 percent and expenses on hotel accommodations nearly doubled in value. Online travel aggregators saw a 224 percent increase in transaction value.
“Spends on dining out have increased by 2.5X and transaction volumes jumped by 162 percent in comparison to last financial year, as per transactions held on Razorpay’s offline payments platform, Ezetap,” the report said.
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