Razorpay, the winner of the Startup of the Year category at the ET Startup Awards 2022, has already exceeded its annual gross transaction value (GTV) target of $90 billion for this year, surpassing the $100 billion barrier even as online businesses begin to decline.
Razorpay, which won the prestigious Startup of the Year category at The Economic Times Startup Awards 2022, plans to go public in the next two to three years and does not need to raise any additional capital because its revenue is growing at a rate of 100% per year, according to its founders Harshil Mathur and Shashank Kumar in an interview with ET. They stated that the company will not require additional money for operations until there is a significant strategic requirement for the business.
The fintech startup, valued at $7.5 billion, has already surpassed its annual gross transaction value (GTV) target of $90 billion for this year, surpassing the $100 billion mark even as internet firms begin to decline.
While the tech industry is slowing, the larger India ecosystem is not, according to Mathur, leading to growth in digital payments from sectors such as education, travel, and others. Following its acquisition of Ezetap earlier this year, the Bengaluru-based fintech firm is also aggressively expanding into offline payments.
“Our payments business is virtually profitable. If we just went public as a payments company, we’d be fine. “However, going public as a payments firm would be an insult to our objective,” Mathur said. “There are a lot of components on credit, banking, and now offline that we will be able to tie together, and the platform’s synergies will be much larger.” We plan to spend the next few years getting them to the point where they can break even and then go public.
Kumar further stated that Razorpay intends to go public with its payments, credit, and neo-banking stories, as well as its foreign and offline payments. “The markets will grasp that much better as well.” Payments between businesses (B2B) and fintech are a little convoluted environment. It will be difficult to illustrate how these things link unless we have proof,” Mathur said, adding that the company is also considering shifting its headquarters. Razorpay’s parent company is based in the United States.
Consumer-focused payment firms such as Paytm and Policybazaar went public last year, listing on Indian bourses, but are trading 60-70% below their issue price due to a variety of concerns, including investors’ doubts about their ability to produce profits.
Razorpay, which funded over $535 million last year, will continue to prioritize expansion over profitability in the future years, according to the founders.
