Merchant payment firm Razorpay reported consolidated revenue of Rs 2,279 crore in financial year (FY) 2023, up nearly 53% year-on-year (YoY) from Rs 1,481 in FY22, mainly on account of a rise in enterprise and SME customers.
Despite a jump in its revenue, the fintech unicorn reported a net profit of Rs 7.3 crore for FY23, which was flat compared to Rs 7.2 crore reported in the previous financial year, showed the company's Registrar of Company (RoC) filings.
The company's total expenses rose 54.6% YoY to Rs 2,283 crore in FY23. Employee benefit expense, which comprises salaries and other employee payouts, contributed around 28% of the total expenses at Rs Rs 638 crore in FY23. The company's finance cost amounted to Rs 5.7 crore in FY23.
The revenue jump comes at a crucial time for the payment gateway platform as the Reserve Bank of India lifted the ban on onboarding new customers to the firm and gave it final authorisation to operate as a Payment Aggregator (PA) under the Payment Settlements Act, 2007.
Also Read: Razorpay, Cashfree receive final RBI nod to operate as payment aggregators
The licence will mean that the payments firm can now start onboarding new merchants to its platforms, thereby increasing revenue.
The company was last valued at over $7 billion. Razorpay also clocked annualised total payment volume (TPV) of around $150 million as of February 2023. In 2022, the firm clocked a TPV of $90 million.
In a recent interaction with Moneycontrol, Razorpay's cofounder Harshil Mathur said that the firm will likely consider an IPO after two years as its reverse flipping process to India is set to close in the next six to twelve months.
Also Read: Razorpay plans IPO post-FY26, India domicile process to close in 6-12 months: CEO Harshil Mathur
The company has also been launching newer products to increase its revenue, including Payment Gateway 3.0 with features like Trusted Badge, Coupon Codes, COD fraud protection, and quick buy technology, at its annual Razorpay FTX event held in Bengaluru on February 23.
Founded in 2014 by Shashank Kumar and Mathur, Razorpay is backed by investors like Y Combinator, GIC, Sequoia Capital India, Ribbit Capital, Matrix Partners, MasterCard, and others who have collectively invested over $740 million in the company.
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