Razorpay records Rs 7.2 crore profit, revenue rises to Rs 2,279 crore

Razorpay FY23 results: Fintech platform for business and payments banking Razorpay has recorded a flatline in profits at Rs 7.2 crore in FY23, at about a 1 per cent fall in profits.

Revenue from operations for the Bengaluru-based B2B SaaS startup stands at Rs 2,279 crore, a 53 per cent rise as opposed to Rs 1,481 crore in the FY22 period, the company’s financial statements reflect.

Razorpay, which is backed by the likes of Tiger Global and Y Combinator, has likely gained majorly on its revenue from payment commission fees, which it sources from online payment services.

As per Razorpay’s financial statements filed in the Ministry of Corporate Affairs accessed via PrivateCircle, the company invested Rs 638 crore in employee benefit expenses, standing for salaries and other employee payouts, which is about 28 per cent of its total expenses at Rs 2,238 crore in the current financial year. 

Out of this,  Rs 65 crore was  ESOP costs settled by the company in non-cash equity.

Finance costs for the company stood at Rs 5.7 crores. Notably, the company spent Rs 36 crore in the purchase of property, plant and equipment.

Razorpay received the payment aggregator license from the Reserve Bank of India (RBI) in December last year, which allows for it to onboard new partners.

The company is in the process of shifting its domicile to India, as per reports. It has raised over $800 million across six rounds, at a valuation of $7.5 billion as of December 20, 2021. The company also plans to go for an IPO in the coming two years.

Razorpay this month achieved yearly total payment volume (TPV) of $150 billion, and also unveiled an AI chatbot.

Razorpay was co-founded in 2014 by Harshil Mathur and Shashank Kumar, competing with the likes of Cashfree, Pine Labs and Stripe.

The company has made 8 acquisitions including Ezetap, ThirdWatch and Opfin.