Jobaaj Stories
Payments Aggregator Razorpay's Indian arm has reported a profit once again as its profit for the year was Rs 7.4 crores.
For the unversed, Razorpay is one of the first payment aggregators in India. It is a Bengaluru-based fintech startup founded in 2014. The company assists businesses in making and collecting payments.
Several famous investors like, Sequoia, Tiger, Matrix, Y Combinator, and GIC have backed this company.
Revenues of the startup saw a massive surge of 76% YoY as the same reached Rs 1,486 crores against Rs 845 crores reported in FY21.
The majority of its revenues were from the commissions earned from merchants. The remaining is from its software and maintenance services.
Expenses also saw a sharp spike as the total surged 76%. From its total expenditure of Rs 1,477 crores, Employee Benefit Expenses continue to be the highest expenses, up 75% in FY22 to Rs 373 crores.
However, marketing expenses surged the most during FY22, rising 219% to Rs 87 crores! As such, the EBITDA margin of the payments aggregator contracted from 38bps to 2.62%.
Razorpay, earlier valued at around $7.5 billion in its last fundraising, turned profitable in FY21 and reported a profit of Rs 6.1 crores. The same grew 20% to Rs 7.3 crores in FY22.
Razorpay is one of the 32 payment aggregators that have received 'in-principle' approval from the Reserve Bank of India to operate as a Payments Aggregator.
- Aman Agarwal.
