Razorpay Reports 65% Surge in FY25 Revenue to ₹3,783 Cr Despite Loss Driven by ESOP and Restructuring Costs
Razorpay, one of India’s leading fintech players, delivered an impressive 65% year-on-year (YoY) jump in operating revenue for FY25, reaching ₹3,783 crore. The company also posted a 41% increase in gross profit to ₹1,277 crore, underlining strong operational efficiency and momentum across its core businesses. However, the company reported a net loss for the fiscal year, driven primarily by exceptional expenses.
The loss, as clarified by Razorpay, stemmed largely from employee stock ownership plan (ESOP) expenses amounting to ₹1,209 crore, coupled with one-time restructuring and tax costs linked to the company’s ongoing efforts to shift its corporate domicile to India. These non-operational costs are seen as strategic investments for long-term benefits.
Strong Growth in Core Business
CEO Harshil Mathur highlighted that Razorpay’s top-line growth reflects its leadership in India’s fintech ecosystem. “We’ve seen solid growth in our online payments business, improved gross margins, and increasing traction for our new product lines. The fundamentals remain very strong,” he said.
Razorpay continues to benefit from India’s growing digital payments landscape. Its core payment gateway and business banking solutions are widely adopted by startups, SMEs, and enterprises. The company also operates RazorpayX and Razorpay Capital, providing neobanking and credit solutions respectively — both contributing meaningfully to revenue growth.
According to CFO Arpit Chug, the company’s India operations are on track to become profitable by FY26. “With operational discipline, margin improvement, and efficiency in scale, we’re confident of achieving consolidated profitability soon after India turns profitable,” Chug stated.
Strategic Shifts: Domicile Move and AI Investments
One of the year’s major developments was Razorpay’s ongoing re-domiciling process to India. Originally incorporated in the U.S., the company is among several Indian startups seeking to relocate their corporate base in line with regulatory and investor expectations.
While the move entails short-term costs, it is expected to streamline compliance, enhance investor trust, and position the company better for potential public listing in the future.
In parallel, Razorpay is doubling down on AI-led innovation, developing AI-first products aimed at improving fraud detection, credit risk assessment, and customer experience. The company is also investing in fintech infrastructure to support third-party developers and enterprises.
Eye on Southeast Asia Expansion
Razorpay’s regional ambitions extend beyond India. The company is actively exploring expansion into Southeast Asian markets, where digital payment adoption is accelerating. With a proven playbook in India, Razorpay sees a significant opportunity to replicate its model in similar, underpenetrated ecosystems.
Future Outlook: Sustainable and Scalable Growth
Despite the reported loss, analysts remain bullish on Razorpay’s long-term prospects. The company has demonstrated consistent revenue growth, operational scalability, and a clear vision for the future. With a focus on profitability, product innovation, and regional expansion, Razorpay is positioning itself as a future-ready fintech powerhouse.
As the Indian fintech space matures, Razorpay’s strategic bets on infrastructure, AI, and compliance could prove critical in building a sustainable and globally competitive financial technology company.
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