Bengaluru: Financial services unicorn RazorPay is aiming to turn profitable in the next two years, pursuant to which will tap the market with a public issue in India. This it estimates will be sometime in FY26, according to co-founder and chief executive officer Harshil Mathur. Before this, the company will need to complete the process of shifting its domicile back to India, which is already underway and should be completed sometime this year, he added.
The company is looking to breakeven in the non-payments business, which accounts for 35 per cent of its total revenue and is still in the red, even as its payments business has turned profitable. RazorPay is processing $150 in total payment volume on an annualised basis as of February 2024, up from $90 million in November 2022.
However, the company is generating enough cash flow and will not be looking to raise additional funds in the near term, chief financial officer Arpit Chugh said.
The fintech unicorn, which caters to business payment needs, has also seen a surge in merchant acquisition since receiving a payment aggregator licence from the Reserve Bank of India in December last year. The company has added 10,000 new merchants since the ban on onboarding was lifted after nearly two years of implementation, as per Mathur.
The company is also expanding its B2B bet with a host of new product launches it unveiled during its flagship event FTX in Bengaluru on Friday. This includes a point-of-sale device that can facilitate UPI payments for enterprise retail outlets through dynamic QR codes. It also supports tap card payments that users can buy or subscribe at one-third of the price of a standard PoS device, the firm informed.
RazorPay also announced its foray into marketing services through the ‘Engage’ stack. It will provide online retailers with a loyalty and rewards platform. Jumping on the AI hype, the company also launched an AI-assistant that e-commerce businesses can use to resolve payments and payroll issues.
Published 23 February 2024, 23:21 IST