Merchant-focused payments provider Razorpay has reported a flat net profit of Rs 7.3 crore for the fiscal year 2022-2023 (FY23), despite its revenues seeing a jump.
Revenue from operations for Razorpay Software Pvt Ltd (RSPL) stood at Rs 2,279 crore in FY23, a 54% surge from Rs 1,481 crore in FY22.
RSPL primarily houses Razorpay’s payments business.
Total expenses for the Tiger Global and Ribbit Capital-backed fintech increased 55% year-on-year to Rs 2,283 crore in FY23.
Employee benefits and salaries were one of the biggest cost centres for the startup, comprising 28% of the total expenses. Employee benefit expenses stood at Rs 638 crore in FY23, up from Rs 372 crore in FY22.
Razorpay’s FY23 results come at a time when the company is looking to shift its domicile back to India before the end of FY25. This would result in the company coughing up a tax bill of $250 -$300 million in the US, ET first reported on November 14.
In an earlier interaction with ET, Razorpay cofounder and chief executive Harshil Mathur said the company is looking to turn profitable across all business lines in the next two years, after which it would consider listing on the Indian bourses.
“We are at least two years from an IPO… Before that, we want other parts of our business to break even and be profitable on all fronts. Our (online) payments business is break-even,” Mathur told ET.
Razorpay’s payments business is already profitable. Other business lines for fintech include lending, offline payments and other value-added services.
Razorpay has raised $741.5 million to date. It last raised $375 million in December 2021 in a funding round co-led by Lone Pine Capital, Alkeon Capital and TCV, valuing the startup at $7.5 billion.
After a year-long ban, the Reserve Bank of India (RBI) in December lifted a ban on Razorpay from onboarding newer merchants for its PG business. Razorpay’s rival Cashfree was also allowed to onboard new businesses.
According to Mathur, Razorpay saw 60,000 – 70,000 new merchant signups for the platform in the first two weeks and onboarded about 10,000 new merchants within a week of enabling onboarding again.
