In 2014, Razorpay emerged as a disruptive force in the Indian fintech industry. The idea was simple yet revolutionary: to simplify online payments for businesses of all sizes. From single-line code integration to enabling seamless transactions, Razorpay’s journey reflects the pulse of India’s digital economy. Today, it stands as a leader, driving innovation and trust in the payments ecosystem.
With the fintech space poised for exponential growth in 2025, let’s dive into Razorpay’s milestones, financial performance, and market presence. This article offers a comprehensive view of how Razorpay continues to shape the future of payments.
Editor’s Choice: Key Milestones
Razorpay has achieved some remarkable milestones that underline its growth and influence. Here are seven key highlights for 2025:
- $490 million raised in Series G funding in 2025, pushing its valuation to $9.2 billion.
- Over 12 million merchants onboarded by 2025.
- Processed $210 billion in total payment volume (TPV) in 2025, reflecting 40% YoY growth.
- RazorpayX Payroll now supports over 40,000 businesses, enhancing HR and compliance operations.
- Magic Checkout adoption reduced cart abandonment by 22% for online retailers in 2025.
- Successfully launched operations in the Middle East and Southeast Asia, expanding global presence.
- Ranked among the Top 5 Fintech Companies in Asia in 2025 by a leading global Fintech index.
Razorpay Financial Snapshot – FY24
- Operating Revenue (FY24): ₹2,475 Cr (↑ from ₹2,279 Cr in FY23 and ₹1,481 Cr in FY22)
- Total Expenses (FY24): ₹2,454 Cr (↑ from ₹2,283 Cr in FY23 and ₹1,476 Cr in FY22)
- Profit (FY24): ₹33.5 Cr (↑ from ₹7.2 Cr in FY23 and ₹7.3 Cr in FY22)
Financial Performance
Razorpay’s financial growth continues to impress in 2025. Here’s a snapshot of its latest performance:
- Revenue climbed to $165 million in FY2025, reflecting a 72% YoY growth from FY2024.
- Achieved profitability with net profits of $48 million in 2025, sustaining its upward trend.
- Subscription revenue surged by 60% YoY, fueled by RazorpayX, Magic Checkout, and lending tools.
- Processed over 7.4 billion transactions in 2025.
- Averaged $17.5 billion in transaction volume per month throughout 2025.
- Disbursed over $620 million in business loans through Razorpay Capital to growing merchants.
- Boosted merchant retention rate to 94%, showcasing high customer trust and satisfaction.
Market Share of Razorpay
Razorpay holds a dominant position in India’s fintech sector, particularly in payment gateways. Here’s a breakdown of its market impact:
- Controls over 55% of the market share in India’s online payment gateway space.
- Powers transactions for 16% of e-commerce businesses in India.
- Accounts for 22% of payment volumes in India’s growing subscription economy.
- Partners with over 60% of India’s tech startups, including Swiggy and Ola.
- Gained a 15% share in digital lending markets via Razorpay Capital.
- Leads in UPI-based payment adoption, processing 35 million daily UPI transactions.
- Expanded its services to 40% of India’s Tier 2 and Tier 3 cities, promoting financial inclusion.
Top Competitors and Alternatives of Razorpay
While Razorpay dominates, it faces competition from several key players in the fintech ecosystem. Here’s how it stacks up:
- Paytm Payment Gateway: Holds 25% market share with a strong focus on mobile-based transactions.
- CCAvenue: Popular among traditional businesses; processes over 1 billion transactions annually.
- Instamojo: Targets small businesses with affordable and simple integration options.
- PayU: Operates in 50+ countries, processing $55 billion in transactions annually.
- Stripe: A global competitor that recently entered the Indian market with plans to capture a 10% market share.
- Easebuzz: Focuses on hyperlocal businesses and startups, providing niche payment solutions.
- Cashfree Payments: Serves 300,000+ merchants and is growing rapidly in digital payouts.
Razorpay continues to stay ahead by focusing on technological advancements, tailored solutions, and customer-centric innovations.
Challenges Faced by Subscription Businesses – Sector-wise Breakdown
- IT and Software and Others sectors face the highest challenges, each accounting for 26% of the total.
- The Education sector makes up 14% of the challenges reported.
- Both Ecommerce and Food & Beverage sectors are equally impacted, each contributing 12%.
- Non-profit organizations face 10% of the challenges in the subscription business space.
Razorpay Customers by Products and Services
Razorpay offers a suite of products and services tailored to diverse business needs, attracting millions of customers. Here’s a closer look at its customer base by product categories:
- Razorpay Payment Gateway: Used by 65% of e-commerce platforms in India, ensuring seamless transactions.
- RazorpayX: Adopted by over 25,000 businesses to manage payroll, taxes, and vendor payments.
- Razorpay Capital: Serves 150,000+ small and medium businesses (SMBs) with fast credit solutions.
- Razorpay Magic Checkout: Improves checkout experience for 30% of D2C brands, reducing cart abandonment.
- Recurring Payments Platform: Utilized by 70% of SaaS companies in India for subscription billing.
- QR Code Payments: Preferred by over 2 million local merchants, simplifying offline payments.
- Payouts by Razorpay: Processes $1 billion in payouts monthly, streamlining vendor and employee payments.
Razorpay Customers by Employee Size
Razorpay continues to serve a broad business base in 2025, from solo professionals to large enterprises:
- Micro-businesses (1–10 employees) represent 46% of customers, driven by fast onboarding and low setup costs.
- Small businesses (11–50 employees) account for 32% of Razorpay’s user base, drawn by tools like RazorpayX Payroll.
- Medium businesses (51–250 employees) make up 16%, using features like smart reconciliation and automated analytics.
- Large enterprises (251+ employees) now comprise 6%, supported with custom APIs and enterprise-grade support.
- Freelancers and solo professionals exceeded 28,000 active users in 2025, attracted by flat fees and easy integration.
- Startups using Razorpay span 45% of India’s funded tech ecosystem, supporting seamless growth and scaling.
Razorpay Customers by Geography
Razorpay’s reach extends beyond metropolitan hubs, promoting financial inclusivity. Here’s its geographic distribution:
- Tier 1 cities: Constitutes 60% of Razorpay’s customers, with dominance in cities like Bengaluru, Mumbai, and Delhi.
- Tier 2 and Tier 3 cities: Grown to 35% of the user base, reflecting adoption in cities like Jaipur, Lucknow, and Coimbatore.
- Rural markets: Accounts for 5%, driven by UPI and QR code adoption among small merchants.
- International markets: Expanded to the Middle East, acquiring 2,000+ merchants in the region.
- Regional diversity: Predominant adoption in West and South India, with 35% and 30% shares, respectively.
- B2B transactions: Thrives in industrial hubs like Pune and Ahmedabad, processing $10 billion annually.
- Tourism-heavy regions: High usage in Goa and Kerala, catering to travel and hospitality businesses.
Payment Method Contribution Breakdown – Razorpay
- UPI leads with the highest contribution at 50.49%.
- Card payments follow with a significant 35.67% share.
- Netbanking holds a modest share of 9.48%.
- Wallets contribute 1.90%, while Bank Transfers account for 1.67%.
- eMandate usage is at 0.74%.
- EMI and Cardless EMI contribute 0.05% and 0.01%, respectively.
Top Stores Using Razorpay
A variety of top-tier businesses trust Razorpay. Here are notable names across industries:
- Swiggy and Zomato: Process millions of daily transactions through Razorpay.
- CRED: Utilizes Razorpay for reward disbursement and seamless user payments.
- Urban Company: Handles 90% of payments via Razorpay, ensuring a smooth service provider experience.
- Mamaearth: Integrates Razorpay Magic Checkout to enhance its customer journey.
- Nykaa: Uses Razorpay for secure transactions, processing over 1 million orders monthly.
- Lenskart: Simplifies checkout experiences using Razorpay’s custom payment gateway.
- Meesho: Relies on Razorpay for both online transactions and vendor payouts.
Razorpay Usage on E-commerce Stores
E-commerce stores form the backbone of Razorpay’s clientele. Here’s how it leverages its services:
- 65% of e-commerce platforms in India use Razorpay for payment processing.
- 40% of D2C brands report improved customer retention with Razorpay Magic Checkout.
- Small e-commerce businesses represent 45% of Razorpay’s merchant base.
- Subscription-based platforms dominate 30% of transaction volumes, driven by recurring payments.
- Digital goods sellers like app stores and content platforms rely heavily on Razorpay for instant payment clearances.
- Cross-border e-commerce: Razorpay supports international payment options for 25% of its users, enabling global sales.
- Festival sales spikes: Processes 3x higher transactions during events like Diwali and Christmas sales.
Stores That Have Recently Installed Razorpay
Razorpay continues its 2025 expansion across industries, attracting both fast-growing startups and major enterprises:
- 80+ new e-commerce startups integrated Magic Checkout in 2025 to drive higher conversion rates and faster checkout.
- 24% of new integrations in 2025 came from edtech platforms like BYJU’s, Vedantu, and Unacademy.
- Healthcare platforms such as PharmEasy, Practo, and new-age clinics now use Razorpay for recurring and instant payments.
- D2C beauty and wellness brands, including Plum, Minimalist, and mCaffeine, adopted Razorpay to enhance UX.
- Hyperlocal delivery apps contributed 12% of recent installations, led by growing demand in Tier-2 and Tier-3 cities.
- Social commerce and influencer platforms boosted Razorpay usage by 18%, tapping into flexible payment workflows.
- Subscription-based platforms like OTT, wellness, and learning apps made up 28% of new integrations in 2025.
Top E-commerce Platforms for Stores Using Razorpay
Razorpay is a preferred payment solution for several leading e-commerce platforms. Here are the top platforms leveraging its services:
- Shopify: Represents 30% of Razorpay’s integrations, offering quick setup for merchants.
- WooCommerce: Accounts for 25% of stores, thanks to its user-friendly plugins.
- Magento: Powers 20% of Razorpay-enabled stores, catering to enterprise-level e-commerce.
- BigCommerce: Used by 15% of new users, attracted by Razorpay’s robust support.
- Dukaan: Helps 10% of Razorpay merchants enter the digital marketplace with minimal setup costs.
- SquareSpace: A growing partner for small businesses using Razorpay.
- Custom platforms: Large enterprises represent 35% of Razorpay integrations with tailored solutions.
Top Categories for Stores Using Razorpay
Razorpay’s versatile ecosystem continues to power businesses across a wide range of industries in 2025:
- Retail and e-commerce now make up 47% of Razorpay’s base, led by high transaction volume and repeat purchases.
- Education and edtech platforms account for 22%, driven by online course subscriptions and tuition payments.
- Healthcare and wellness services contribute 11%, especially in telehealth and recurring medical plans.
- Travel and tourism businesses represent 9%, with rising use in dynamic pricing and bookings.
- Food delivery and restaurant chains cover 8%, thanks to POS integration and real-time settlements.
- Entertainment platforms make up 6%, dominated by OTT and gaming subscriptions.
- Professional services and freelancers comprise 17%, using Razorpay for invoicing and global payments.
Cyber-safety
Ensuring transaction security is a top priority for Razorpay. Here’s how the company leads in cyber-safety:
- Achieved PCI DSS Level 1 compliance, the highest standard in payment security.
- Implemented tokenization technology, protecting 95% of card transactions.
- Introduced multi-layered authentication protocols to secure UPI payments.
- Reduced phishing attacks by 22% YoY through merchant education campaigns.
- Prevented $50 million in cyber fraud using machine learning-based anomaly detection.
- Launched a bug bounty program to identify vulnerabilities, awarding over $200,000.
- Strengthened data encryption practices, safeguarding 99.9% of transactions.
Razorpay Expenses Breakdown – FY23 vs FY24
- Total Expenses rose from ₹2,283.1 Cr in FY23 to ₹2,454.3 Cr in FY24.
- Hosting Charges increased from ₹1,539 Cr to ₹1,728.1 Cr – the largest expense category in both years.
- Employee Benefits slightly declined from ₹637.5 Cr (FY23) to ₹612 Cr (FY24).
- Legal & Professional Charges rose from ₹16 Cr to ₹17.1 Cr.
- Other Expenses grew modestly from ₹90.6 Cr to ₹97.1 Cr.
Regulatory Environment
Navigating the evolving regulatory landscape remains a key focus for Razorpay in 2025 — here are the latest developments:
- Achieved RBI Payment Aggregator license renewal in 2025, ensuring full compliance with the updated framework.
- Fully aligned with the Digital Personal Data Protection Act 2025, reinforcing data privacy and consent protocols.
- Collaborated with NPCI to raise UPI transaction limits by 30% for small businesses and merchants.
- Secured regulatory approval for international payments in 35+ countries under updated FEMA guidelines.
- Partnered with SEBI-recognized brokerages to power real-time payment flows and account funding.
- Integrated with the expanded GST 3.0 e-invoicing network, easing tax compliance for over 1 million merchants.
- Advocated for MSME-friendly fintech reforms, contributing to 80% of key policy updates in the digital payments sector.
Recent Developments
Razorpay continues to evolve at a rapid pace in 2025. Here’s what’s new:
- Rolled out RazorpayX 3.0, upgrading payroll automation, real-time vendor payouts, and AI-based compliance.
- Acquired two fintech startups specializing in banking-as-a-service and credit underwriting, expanding product depth.
- Opened a new innovation campus in Bengaluru, now home to 1,500+ engineers and data scientists.
- Launched BNPL solutions for 22% of active merchants, boosting average order value by 28%.
- Partnered with Google Pay and PhonePe to enhance UPI speed and success rates across segments.
- Disbursed over $850 million in merchant loans through an expanded Razorpay Capital portfolio.
- Signed a strategic MoU with NASSCOM and MeitY to accelerate digital payments R&D and policy innovation.
Conclusion
Razorpay’s trajectory showcases its commitment to innovation, security, and customer satisfaction. From enhancing e-commerce efficiencies to pioneering financial inclusivity in Tier 2 and 3 cities, the company has firmly established itself as a leader in the fintech space. As 2025 unfolds, Razorpay is poised to push the boundaries of what’s possible in digital payments, shaping the future of commerce.
