As Revenue Crosses INR 800 Cr In FY21, Fintech Unicorn Razorpay Turns Profitable
- ByStartupStory | March 12, 2022
The highest valued fintech startup in India, Razorpay, with net profit of INR 7 Cr has turned profitable in FY2021, on a standalone basis.
The Bengaluru-based startup in FY21 saw revenue from sales climb to INR 841.2 Cr, in FY20 it reported a 65.2% jump from INR 508.9 Cr. For the year, the overall revenue was INR 844 Cr, in FY20 a 1.6X jump from INR 519.4 Cr. In FY21, INR 2.8 Cr was generated by the company as non-operating income. In FY21, INR 836.6 Cr was spent by the startup as operational costs, which is almost a 60% rise in expenses in FY20 from INR 525.4 Cr.
Of the past three years, the profitability breaks Razorpay’s loss-making streak. After its latest funding round in December 2021, the startup whose valuation reached $7.5 Bn posted a loss in FY20 of INR 6.1 Cr and in FY2019 a loss of INR 3.2 Cr. In FY18, it incurred a loss of INR 12.7 Cr.
For employees, gratuity, PF contributions and expenses for other employee welfare benefits, Razorpay spent about INR 213.3 Cr for employee benefits expenses which largely comprises salaries. In FY20 the startup spent INR 120.5 Cr for the same. In promotional activities it further spent INR 18.3 Cr and for training and recruitment processes of about INR 5.6 Cr.
About $375 Mn was bagged by Razorpay last year in its Series F round from Lone Pine Capital, Alkeon Capital, and TCV among others making it the highest valued fintech startup, at a valuation of $7.5 Bn. After bagging $100 Mn from Singapore’s GIC and Sequoia Capital, among others it entered the unicorn club in 2020.
As a payment gateway platform, Razorpay was founded by Shashank Kumar and Harshil Mathur in 2014, It has branched out into SME payroll management, lending, banking, payments, insurance among others. It claims to enable digital payments for over 200K small and large businesses. It also included entities like IRCTC, NSE, BookMyShow, Airtel, Swiggy among others.
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