Razorpay targets 40-50% annual growth amid expansion plans: CEO
Digital payments firm Razorpay is planning to grow 40-50 per cent annually over the next three to four years, Harshil Mathur, co-founder and chief executive officer of Razorpay told businessline.
“We continue to see an overall 50 per cent growth at least for the next three to four years. The payment business will grow around 40 or 50 per cent, while the other businesses are growing at 70-80 per cent year-on-year,” said Mathur.
The fintech major is also planning to expand its international presence. Though Mathur didn’t specify which markets, he said the company wants to enter two major global markets in 2025.
“We have expanded into Malaysia and have seen good acceptance of our payment ecosystem. We are soon going to expand into other markets of Southeast Asia,” he noted.
IPO and profitability
Razorpay plans to go public in the next two years once it achieves profitability. The Bengaluru-based firm processes around $180 billion worth of transactions every year and has reported profit in its core payments business. Overall, the company has yet to report profitability as its other businesses continue to absorb cash.
“Our payment business is profitable and it’s generating money. The other aspects of our business –neobanking, credit, loyalty and others, continue to grow and absorb cash,” said Mathur.
Razorpay is in the process of ‘reverse flipping,’ i.e., moving its parent company’s domicile to India. According to sources, the firm expects a tax payout of about $200 million to US authorities for shifting its domicile to India. The company is seeking approval from RBI for ‘reverse flipping,’ and after that, Razorpay will have to seek approval from the Ministry of Corporate Affairs.
Other businesses
While payments remain Razorpay’s core business, its other ventures are driving substantial growth. “Our cross-border business will grow at 100% plus in the next few years,” noted Mathur, highlighting untapped potential in global markets.
In terms of expanding its offline presence, Razorpay plans to triple that number in two years to serve enterprise clients. The company operates across 6 lakh touchpoints.
Loyalty solutions, powering programs for brands like Zomato and Swiggy, are expanding to include 12-15 new major brands.
“We don’t just build loyalty engines; we also help distribute them across our vast merchant network,” Mathur adds. These businesses are growing 70-80 per cent annually, reflecting Razorpay’s ambition to lead across domains.