Razorpay FY22 revenue surges 75% in second successive profitable year

Fintech unicorn Razorpay’s total revenue for the fiscal 2022 jumped 75% to Rs 1,485.7 crore from Rs 844.6 crore. 

The company, which had turned profitable in FY21 on a standalone basis, recorded a profit of Rs 7.3 crore, up by 18% in FY22.

It is yet to post profits on a consolidated basis. 

Razorpay primarily earns revenue from fees paid by merchants (payment gateway commission), followed by software development and maintenance services and marketing services. 

The fintech’s total expenses stood at Rs 1,476.4 crore, up by 76% from Rs 838.94 crore in FY21.

Of the total expenses, the company spent Rs 31 crore on advertising promotion while Rs 54 crore went towards marketing expenses in FY22. It had spent a total of Rs 26 crore on the same, the previous fiscal. 

The Bengaluru-based firm focused on scaling its product with a slew of acquisitions last year. 

Of the total 7 buyouts, four deals took place in 2022 alone. This includes Curlec, Malaysian-based recurring payments firm; Izealiant, Pune-based banking technology company; Ezetap, POS payments solution provider; and PoshVine, loyalty and rewards management company. 

Its newly-introduced lending and neo-banking businesses—Razorpay Capital and Razorpay X—which make up for under 10% of revenue, are incurring losses, the founders had told Forbes.  

Backed by Tiger Global, Sequoia Capital India, GIC, Lone Pine Capital, Alkeon Capital, and TCV, Razorpay was valued at around $7.5 billion in its last funding round in December 2021.

In the most recent development, the RBI had granted an in-principle approval to 32 entities, including Razorpay, for payment aggregator licence. However, it had barred the fintech from onboarding new merchants, the implication of which may reflect in its FY23 results. Alongside, the company continues to strengthen its banking platform, Razorpay X, by adding digital lending solution for NBFCs and fintechs, and forex services for startups.