Razorpay revenue surges 65% in FY25, posts loss due to redomiciling costs

Razorpay Founders Harshil Mathur & Shashank Kumar

Fintech firm Razorpay reported a strong 65% jump in consolidated revenue for FY25 to Rs 3,783 crore, up from Rs 2,296 crore in the previous fiscal, driven by growth across its payments gateway, point-of-sale (POS), loyalty, RazorpayX, and international businesses.

Gross profit rose 41% year-on-year to Rs 1,277 crore from Rs 906 crore in FY24, reflecting improved operational performance and higher contribution from non-payment gateway verticals.

However, the company reported a post-ESOP loss of Rs 1,209 crore, which Razorpay attributed to one-time costs related to its redomiciling in India, including restructuring and tax payments.

“FY25 was a pivotal year for Razorpay,” said Harshil Mathur, CEO and Co-founder of Razorpay. “We delivered top-line growth through strong execution, while simultaneously improving our gross margins. 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.”

He added that Razorpay’s ongoing expansion into Southeast Asia and continued investments in fintech infrastructure are positioning it to become a diversified platform powering business growth and innovation in the digital economy.

Razorpay’s redomiciling process — moving its parent entity from the U.S. to India — is part of a broader trend among Indian unicorns seeking to align their corporate structures with domestic operations and regulatory frameworks.

Moneycontrol reported on May 29 that Razorpay was set to pay approximately Rs 1,245 crore (around $150 million) in taxes to the Indian government as part of its reverse flip process that involved shifting its domicile from the US to India, according to people familiar with the matter.

The company, which operates in the payments space, will make this tax payment using internal cash reserves, sources told Moneycontrol, adding that Razorpay is not looking to raise fresh capital to cover the liability.

The firm is targeting an IPO within the next 18-24 months, said sources, adding that the fintech remains well-capitalised to support operations and growth ambitions. Bankers for the IPO are yet to be appointed.

Razorpay, backed by marquee investors such as Y Combinator and Peak XV Partners, had initiated the reverse flip process in May 2023 to align its corporate structure with its future listing goals in India.

Moneycontrol reported first on May 29 that the reverse flip was officially completed, which involved merging the company’s US-registered parent with Indian subsidiary, Razorpay Software India, bringing the company’s headquarters under Indian jurisdiction.