According to its founders Harshil Mathur and Shashank Kumar in an interview, Razorpay, which won the esteemed 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 increasing at a rate of 100% per year. They said the business won't need more funding for operations unless there is a big strategic need for the business.
The $7.5 billion fintech startup has already achieved its GTV (gross transaction value) goal of $90 billion for this year, surpassing the $100 billion mark even as internet firms start to experience a decline.
According to Mathur, the greater India ecosystem is still driving development in digital payments from industries like education, travel, and others despite the tech sector's slowdown. Bengaluru-based fintech company is actively expanding into offline payments following its acquisition of Ezetap earlier this year.
“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 added. “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.”
Kumar added that Razorpay intended to make its payments, credit, neo-banking, overseas, and offline payment stories public. “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 business is also thinking about moving its headquarters. The parent firm of Razorpay is situated in the US.
Consumer-focused payment companies like Paytm and Policybazaar went public last year and were listed on Indian bourses, but they are currently trading 60–70% below their issue price for a variety of reasons, including investor uncertainty about their capacity to turn a profit.