Fintech giant RazorPay to shift domicile to India; Announces new product launches

Razorpay, a leading merchant-focused payments provider in the India market, said it is on a strategic path to achieve profitability across all its business lines within the next two years, after which it plans to consider listing on the Indian bourses.

Harshil Mathur, co-founder and CEO, said the company is focused on reaching a break-even point in its operations, particularly its online payments business, which currently contributes to 75% of the overall revenues and has already achieved this milestone.

Shifting domicile back to India

As Razorpay prepares for a domestic public listing, the company is in the process of shifting its domicile back to India, a move expected to be completed before the end of FY25.

The transition, however, comes with a significant tax bill estimated between $250 to $300 million in the US. Despite this financial pressure, Mathur reassures that Razorpay's robust cash reserves and operational efficiency position the company well, eliminating the need for additional fundraising before the IPO.

Rebounding from regulatory challenges

Following a year-long embargo imposed by the Reserve Bank of India (RBI) on new merchant onboarding, Razorpay has made a strong comeback. The lifting of this ban has led to a surge in new merchant signups, with the company processing $150 billion worth of payment value annually across its products.

Mathur said the company aims to regain nearly 70% of the merchants that it lost during the embargo period.

Launching new products

Razorpay has introduced new products to enhance its online and offline payment solutions. The company's Payment Gateway 3.0, powered by AI technology, aims to streamline checkout processes. The gateway is expected to serve over 600 million online shoppers in the next decade, according to the company's statement.

In addition, Razorpay announced the launch of a Dynamic Quick-Response (DQR) device designed to support QR-based and contactless tap card payments through near-field communication (NFC) technology.

The company is also venturing into loyalty and rewards management with the introduction of Razorpay Engage HQ, which will provide personalized offers to customers across various channels.

Furthermore, Razorpay has launched RAY, India's first AI assistant for managing payments, payouts, payroll, and vendor payments, among other functions. Currently, the assistant can respond to queries in English and Hindi, with plans to include additional regional languages as new language models are developed.

On the AI front, Razorpay has unveiled a chargeback protection program named FraudShield. This program guarantees to reimburse businesses for any losses incurred due to fraudulent chargebacks, underscoring the company's commitment to securing transactions.

“We are heavily leveraging the true power of AI in our products, right from chargeback protection to RTO (return to origin) fraud detection to DoclessAI integration that enables businesses to go live in just 10 minutes, Razorpay is all in for AI. With the launch of PG 3.0, we have built a new standard in digital payments and completely changed the way India thinks about commerce,” said Shashank Kumar, managing director and co-founder, Razorpay.

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