Razorpay FY25 Results: Revenue Soars 65%, Post-ESOP Loss of Rs 1,209 Crore

Fintech company Razorpay reported a 65% jump in consolidated revenue for FY25, reaching Rs 3,783 crore, up from Rs 2,296 crore in FY24. The growth was driven by strong performance across its payments gateway, point-of-sale (POS), loyalty programs, RazorpayX, and international operations.

Market Performance

Razorpay’s robust revenue growth reflects its expanding footprint in the digital payments and fintech ecosystem. The company continues to scale operations both domestically and internationally, creating a diversified revenue base.

Main Highlights: FY25 Financials

The company posted solid operational performance, while accounting for one-time costs linked to its redomiciling in India:

• Consolidated Revenue: Rs 3,783 crore (up 65% YoY)
• Gross Profit: Rs 1,277 crore (up 41% YoY from Rs 906 crore)
• Post-ESOP Loss: Rs 1,209 crore, primarily due to redomiciling-related expenses, including restructuring and taxes

The strong revenue growth was broad-based, reflecting contributions from both traditional payment services and newer verticals outside the core gateway business.

Company Strategy and Expansion

CEO and Co-founder Harshil Mathur emphasized FY25 as a pivotal year for Razorpay:

• Online payments are now EBITDA profitable and generating strong cash flows
• Newer businesses such as POS, loyalty programs, and RazorpayX are scaling rapidly, unlocking new growth opportunities
• Continued expansion into Southeast Asia and investments in fintech infrastructure are positioning Razorpay as a diversified platform for business growth

Redomiciling to India

Razorpay’s redomiciling process involved moving its parent entity from the US to India to better align with domestic operations and regulatory frameworks:

• Tax payments for reverse flip: Approx. Rs 1,245 crore ($150 million)
• Funded entirely through internal cash reserves
• No fresh capital raising required to cover this liability

The reverse flip aligns Razorpay’s corporate structure with its future IPO ambitions in India.

Growth Outlook

The fintech firm remains well-capitalized, positioning it for continued expansion:

• Diverse revenue streams across payments, POS, loyalty, RazorpayX, and international markets
• Strengthened operational efficiency with gross profit growth of 41% YoY
• Preparing for a domestic IPO within 18–24 months, with corporate structure aligned to listing goals

Summary

FY25 was a transformative year for Razorpay, marked by rapid revenue growth and strategic restructuring. While the post-ESOP loss reflects redomiciling costs, the company’s core business and emerging verticals continue to expand strongly.

With operational profits in its payment gateway business, a scaling portfolio of fintech services, and robust capitalization, Razorpay is steadily shaping itself as a key platform powering business growth and innovation in India’s digital economy.