Razorpay Statistics 2025: Financial Growth, Market Position, and Future Outlook

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:

$375 million funding in its Series F round in 2023, boosting its valuation to $7.5 billion.
Over 8 million merchants onboarded by 2023, a significant leap from 6.5 million in 2022.
Processed $150 billion in total payment volume (TPV) in 2023, up by 40% year-on-year (YoY).
Launched RazorpayX Payroll, a tool used by over 25,000 businesses to streamline employee management.
Introduced Razorpay Magic Checkout, reducing cart abandonment rates by 18% for e-commerce platforms.
Expanded operations to Middle East markets, marking its first international venture.
Recognized as one of the Top 10 Fintech Companies in Asia in 2023 by a leading global Fintech report.

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 has been nothing short of impressive. Here’s a look at the company’s financial performance in recent years:

Revenue soared to $115 million in FY2023, marking a 76% YoY growth from FY2022.
Achieved profitability in 2023, with net profits reaching $30 million.
Grew its subscription revenue by 55% YoY, driven by tools like RazorpayX and Magic Checkout.
Processed over 5.6 billion transactions in 2023, a 33% increase compared to 2022.
Handled transactions worth an average of $12.5 billion per month throughout 2023.
Expanded merchant credit offerings, disbursing over $400 million in business loans via Razorpay Capital.
Increased its merchant retention rate to 92%, indicating strong customer satisfaction and trust.

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 as of 2023.
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.

Empowering India's Leading Tech Startups

Gained a 15% share in digital lending markets via Razorpay Capital.
Leads in UPI-based payment adoption, processing 35 million daily UPI transactions in 2023.
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 caters to a wide spectrum of businesses, ranging from startups to enterprises. Here’s the customer segmentation by employee size:

Micro-businesses (1-10 employees): Represents 50% of Razorpay’s clientele, driven by ease of integration and cost efficiency.
Small businesses (11-50 employees): Accounts for 30% of users, benefiting from tools like RazorpayX Payroll.
Medium businesses (51-250 employees): Makes up 15%, leveraging advanced features like automated invoicing and analytics.
Large enterprises (251+ employees): Comprises 5% of Razorpay’s customers, relying on custom solutions and dedicated support.
Freelancers and individual professionals: Includes 20,000+ active users, supported by quick onboarding and minimal fees.
Startup ecosystem: Covers 40% of India’s tech startups, enabling seamless scaling for high-growth ventures.

Razorpay's Tailored Solutions for Businesses of All Sizes

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 in 2023, 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 at 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.

Managing Transaction Surges During Festive Seasons

Stores That Have Recently Installed Razorpay

Razorpay continues to attract businesses across various sectors, from startups to established enterprises. Here are key highlights of recent adopters:

50+ new e-commerce startups integrated Razorpay Magic Checkout in 2023 to boost conversion rates.
20% of new integrations in 2023 came from education tech platforms like BYJU’s and Unacademy.
Healthcare providers such as Practo and PharmEasy have onboarded Razorpay for subscription and one-time payments.
D2C beauty brands like Plum and Minimalist joined Razorpay to optimize checkout experiences.
Hyperlocal delivery services adopted Razorpay, contributing 10% of recent installations.
Social commerce platforms, including influencer marketplaces, increased Razorpay usage by 15%.
Subscription platforms like fitness apps and OTT services now make up 25% of recent additions.

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 offerings cater to businesses across diverse categories. Here are the leading sectors:

Retail and e-commerce: Constitutes 50% of Razorpay’s user base, driven by transaction volume.
Education: Covers 20%, including edtech and online learning platforms.
Healthcare: Accounts for 10%, particularly for telemedicine and subscription-based wellness services.
Travel and tourism: Represents 8%, with increased adoption post-pandemic.
Food delivery and restaurants: Covers 7%, optimizing operations for quick payments.
Entertainment: Includes 5%, with OTT platforms leading the segment.
Professional services: Makes up 15%, including freelancers and digital agencies.

Razorpay's Sector-Wide Adoption Across Key Industries

Technological Innovations

Razorpay invests significantly in technology to enhance user experience and efficiency. Here are the latest innovations:

AI-powered fraud detection: Prevented $30 million in potential fraud losses in 2023.
Razorpay Magic Checkout: Reduced cart abandonment by 18%, boosting e-commerce conversions.
One-click UPI mandates: Enables seamless recurring payments for 70% of SaaS businesses.
Real-time analytics: Offered to all merchants, ensuring actionable insights into customer behavior.
Smart routing technology: Increased transaction success rates by 12% for enterprise clients.
Voice-enabled payment services: Piloted for 10,000 small merchants, simplifying operations.
Blockchain-based payment verification: Enhanced security for 15% of high-risk transactions.

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 in 2023.
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 regulatory landscape is critical for Razorpay’s operations. Key regulatory developments include:

RBI’s Payment Aggregator Framework compliance was achieved in 2023.
Fully aligned with Data Protection Bill 2023 requirements for safeguarding customer data.
Collaborated with the NPCI to improve UPI transaction limits for small businesses.
Gained approval for cross-border transactions in compliance with FEMA regulations.
Partnered with SEBI to support online brokerages with seamless payment solutions.
Supported the GST e-invoicing initiative, simplifying tax compliance for merchants.
Advocated for MSME-friendly reforms, influencing 75% of policy updates impacting digital payments.

Recent Developments

Razorpay continues to evolve rapidly. Here’s what’s new:

Introduced RazorpayX 2.0, enhancing payroll and vendor payment features.
Acquired a banking-as-a-service startup, expanding its fintech ecosystem.
Opened a new tech hub in Hyderabad, housing over 1,000 engineers.
Launched Buy Now, Pay Later (BNPL) solutions for 15% of merchants, driving higher ticket sales.
Partnered with Google Pay for enhanced UPI transaction services.
Expanded its lending portfolio, disbursing $600 million in merchant loans.
Signed a memorandum with NASSCOM to foster innovation in digital payments.

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 2024 unfolds, Razorpay is poised to push the boundaries of what’s possible in digital payments, shaping the future of commerce.

Sources

Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.