Razorpay secures RBI approval for cross-border payments ahead of IPO

IPO-bound Razorpay has reportedly secured the Reserve Bank of India’s cross-border payment aggregator licence, enabling the fintech major to facilitate both inward and outward international transactions under full regulatory oversight.

According to a report by Entrackr, the licence will allow Razorpay to support exporters, SaaS companies, freelancers, D2C brands and global companies operating in India. The company’s international payments stack is already used by global platforms such as Airbnb, Agoda and Shopify. Razorpay said its cross-border business is growing at 40 percent year-on-year.

The regulatory milestone comes as the Bengaluru-headquartered company prepares for its public listing, even as it reported a post-ESOP loss of Rs 1,209 crore in FY25. The loss was driven largely by restructuring costs and tax liabilities linked to its redomiciling from the United States to India, a process it completed in May.

Despite the one-time impact, Razorpay posted a 41% rise in gross profit, increasing from Rs 906 crore in FY24 to Rs 1,277 crore in FY25. Consolidated revenue grew 65% to Rs 3,783 crore in FY25, up from Rs 2,296 crore in the previous fiscal.

The fintech unicorn has raised more than $741 million from investors including Lightspeed, Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Peak XV Partners, Ribbit Capital, Matrix Partners, Salesforce Ventures and Y Combinator.