Simplifying Digital Payments: Harshil Mathur’s Razorpay Powers India’s Fintech Surge

Bengaluru, October 22, 2025 – Harshil Mathur, the IIT Roorkee alumnus who co-founded Razorpay in 2014, has turned a simple payment gateway into a $9.2 billion fintech powerhouse serving over 8 million businesses. With FY25 revenue jumping 65% to Rs 3,783 crore and an IPO targeted within 18-24 months, Razorpay’s growth reflects India’s booming digital economy, where UPI transactions exceed 20 billion monthly, enabling small enterprises to thrive amid a $1 trillion payment market by 2027.

Early Foundations: From Engineering to Entrepreneurial Fire

Harshil Mathur was born in Jaipur, Rajasthan, in the early 1990s, growing up in a family that valued education and innovation. He pursued a B.Tech in mechanical engineering from IIT Roorkee, where he met co-founder Shashank Kumar in 2009. Their shared passion for technology led to early ventures, including a freelance web development stint and Kumar’s role as a software engineer at Microsoft.

After graduation, Mathur joined Schlumberger as a wireline field engineer from 2013 to 2014, gaining hands-on experience in high-stakes environments. “I loved the problem-solving, but I craved building something of my own,” Mathur reflected in a 2025 Forbes Asia interview. Frustrated by India’s clunky payment systems—long integration times and high fees for small businesses—he and Kumar quit stable jobs to launch Razorpay, bootstrapping with personal savings and a Y Combinator acceptance in 2015.

Launching Razorpay: A Gateway for Small Businesses

Razorpay debuted in 2014 as a developer-friendly payment gateway, enabling seamless integrations for cards, UPI, wallets, and netbanking in just 15 minutes. Unlike legacy providers, it charged no setup fees and offered APIs tailored for startups. “We built for the underdogs—kiranas and e-commerce hustlers who couldn’t afford enterprise tools,” Mathur told Inc42 in February 2025.

Starting in Bengaluru, the platform quickly attracted clients like Zomato and Swiggy. By 2016, it expanded to international payments and POS solutions, processing $5 billion annually by 2019. The COVID-19 surge in digital commerce propelled growth, with UPI becoming its backbone.

Funding Triumphs and Valuation Leap

Razorpay raised $742 million across 11 rounds from 37 investors, including Tiger Global, Sequoia India (now Peak XV), GIC, and Y Combinator. Key milestones: $100 million Series C in 2020 at $1 billion (unicorn status), $160 million Series E in 2021 at $3 billion, and a $375 million Series F in December 2021 at $7.5 billion, led by Lone Pine Capital, Alkeon, and TCV.

The latest valuation hit $9.2 billion in 2025, per Tracxn, with Mathur and Kumar each holding stakes worth about $1 billion (Rs 8,643 crore), making them India’s youngest billionaires at 34, according to the Hurun Global Rich List 2025.

Razorpay Funding Timeline

Grok can make mistakes. Always check original sources.

Source: Tracxn and Crunchbase data cited in Business Standard and ET.

Financial Momentum and Strategic Expansions

Razorpay’s FY25 revenue climbed 65% to Rs 3,783 crore from Rs 2,296 crore in FY24, driven by payments (core gateway), POS, loyalty programs, RazorpayX (neo-banking for payroll and credit), and international arms. Gross profit rose 41% to Rs 1,277 crore, though a Rs 1,209 crore loss stemmed from ESOPs and reverse-flip costs to India in March 2025.

The reverse flip—shifting domicile from Delaware to India—aligns with IPO plans, targeting FY27 listing without fresh capital raises. Expansions include Singapore office for cross-border payments (33% of Southeast Asia’s e-commerce) and entries into Philippines, Thailand, Indonesia, and Vietnam by 2028. Acquisitions like Curlec (2019) and PoshVine bolster SME lending and loyalty tools.

Revenue Growth Overview

Fiscal Year	Revenue (Rs Crore)	Key Driver
FY23	2,279	UPI surge
FY24	2,296	Neo-banking
FY25	3,783	International & POS

Source: Company filings cited in Moneycontrol and Inc42.

Challenges and Resilient Leadership

Razorpay faced hurdles like RBI’s 2020 NOC delays for payment aggregator status (resolved in 2021) and competition from PhonePe and Paytm. Mathur’s pragmatic style—prioritizing unit economics over hype—helped navigate these. “We focus on builders, not just valuations,” he said in a 2025 Davos panel, praising India’s UPI edge over global peers.

With 3,000+ employees and ESOPs for all, Mathur fosters a “wealth-creation” culture, granting liquidity in 2024 to mark a decade.

Broader Impact and Future Vision

Razorpay empowers 8 million businesses—80% SMEs—with tools processing $750 billion in P2M payments by 2030, creating jobs and boosting digital inclusion. Mathur’s journey—from 100 bank rejections to billionaire—shows grit in fintech’s cutthroat arena.

As IPO looms, with headquarters shift to Bengaluru, Razorpay eyes $10 billion valuation. “India’s payments story is just starting,” Mathur told Business Standard in 2025. In a UPI-fueled world, Razorpay cuts through the noise, one seamless transaction at a time.

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Last Updated on Wednesday, October 22, 2025 3:32 pm by Startup Newswire Team

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