Razorpay has no immediate plans to shift the domicile of its parent entity to India from US, says Chief Business Officer Rahul Kothari.
“A lot of these discussions happen from a taxation and legal perspective. Some of those options are there but there is nothing concrete as of now,” he said. Razorpay had to domicile itself in US to raise funds from Y-combinator.
Kothari’s comment comes at a time when a flurry of start-ups have been reverse-flipping their country of domicile to India from other jurisdictions even as they face large tax bills in the process. Recently, online payments firm PhonePe moved its domicile to India from Singapore.
Currently, the Razorpay is focussing on product innovation and retaining market share in its online payment business. It is looking to expand market share in the offline business through partnerships with banks.
It is focussing on hitting profitability as far as the neo-banking and capital businesses are concerned. After scaling its business in Malaysia, the company is now focussing on expanding its presence in other geographies in Southeast Asia like Singapore and Indonesia. Additionally, it is also assessing prospects in western markets.
“Payments is about how we scale, neo-banking and capital is about how we reach a stage where we become sustainable, and new markets is whether those can become as big as the India business,” Kothari said.
Currently, neo-banking and capital businesses contribute around 15-20% of the company’s revenues. The company runs a neobanking platform RazorpayX and a business-to-business lending platform Razorpay Capital.
Currently, neo-banking and capital businesses contribute around 15- 20% of the company’s revenues.
Recently, Razorpay announced that it has acquired Mumbai-based digital invoicing and customer engagement company BillMe with an aim to build an omnichannel payments system for customers. But, the company did not disclose the financial details of the deal.
“We are impressed with the overall success and growth of BillMe in a very short period of time. The team that comes is top notch in terms of the overall understanding of the market and the product build,” Kothari said while explaining the rationale for the acquisition.
“Also, the perspective of the founding members aligned well with Razorpay culture in terms of innovation, ambition, and passion for consumer challenges. Those things aligned really well,” he added.
BillMe is the company’s eighth acquisition. Earlier, it had acquired a number of startups like Ezetap, PoshVine, Curlec, and IZealiant Technologies.
Going ahead, the company will continue to evaluate acquisitions in line with its overall strategy. It also plans to launch an initial public offering in a couple of years.
“While our payments business is almost break-even, we want to make sure that the neo-banking and capital business break even and profitable, which will probably be in a couple of years down the line,” he said.