Razorpay Raises $535 Million in Last Fiscal Year

Razorpay, a business-focused payment gateway and neo-banking platform, has raised $535 million including its $160 million (Series E) and $375 million (Series F) during the last fiscal year ending March 2022. The fundraising backed an expansion in scale which approached the Rs 1,500 crore mark. Razorpay’s operating revenue spiked 76.1% to Rs 1,481.2 crore in FY22 from Rs 841.2 crore in FY21. Payment gateway commission was the major source of collection for the company. Other income mainly came from interest on fixed deposits which increased 28.5% to Rs 4.46 crore in FY22. The company booked an amount of Rs 826.1 crore as miscellaneous accounting for 55.9% of the overall cost and employee benefit expenses surged 75% to Rs 372.5 crore. Hosting charges and marketing expenses jumped 2.3X and 3.4X respectively to Rs 72.2 crore and Rs 54.2 crore in FY22. With almost equal growth in scale and cost, the profits of the company grew marginally by 19.2% to Rs 7.38 crore on a small base. Razorpay has become a ubiquitous part of the payments landscape in India, while operating at what is effectively breakeven levels in a very competitive market, giving it enough flexibility to find more profits by reducing costs.