Affirm Holdings, Inc. vs Razorpay: Strategic Comparison

This in-depth comparison examines Affirm Holdings, Inc. and Razorpay across revenue, market value, business model, competitive positioning, and long-term growth strategy. Whether you are researching Affirm Holdings, Inc. on its own, evaluating Razorpay, or weighing the two companies side by side, the breakdown below highlights where each company leads and where the gap between Affirm Holdings, Inc. and Razorpay is widest.

On the headline numbers, annual revenue is $4.3B (FY2026) for Affirm Holdings, Inc. and ~$438.8M (FY2025) for Razorpay, while their respective market capitalizations stand at $24.0B and N/A. Affirm Holdings, Inc. is headquartered in United States and Razorpay in India, and those different home markets shape how each company competes.

Affirm Holdings, Inc.: Founded in 2012, Affirm offers installment-payment options online, in stores, and through Affirm Card. It went public on Nasdaq in January 2021 and has expanded through merchant and platform partnerships, product launches, and acquisitions including Sweep, PayBright, and Returnly. The company is headquartered in San Francisco, California.

Razorpay: Razorpay is often described as the Stripe of India. Founded in 2014 and headquartered in Bengaluru, it lets businesses accept payments online and in store, pay vendors and staff, and borrow against their sales. It is authorised by the RBI as a payment aggregator and became a public limited company, Razorpay Software Limited, in 2025 ahead of a planned IPO. The company is headquartered in Bangalore, India. Razorpay was founded in 2014 in Jaipur, Rajasthan, India, by IIT Roorkee alumni Harshil Mathur and Shashank Kumar, becoming the first Indian fintech accepted into Y Combinator before building India’s premier full-stack payments and neo-banking platform.

Affirm Holdings, Inc. and Razorpay pursue distinct approaches to generating revenue, and understanding how each company operates is the foundation of any fair comparison between Affirm Holdings, Inc. and Razorpay.

Affirm Holdings, Inc. business model: Affirm earns merchant-network revenue when consumers use its payment options, interest income on interest-bearing loans, card-network revenue, gains when it sells loans to third parties, and servicing income. Some plans carry 0% APR, while interest-bearing loans disclose a fixed repayment schedule. Affirm says it does not charge late or hidden fees.

Razorpay business model: Razorpay earns most of its money from transaction fees. Merchants on its payment gateway pay a merchant discount rate on each successful payment (standard published pricing is 2% for most domestic cards, net banking and wallets, with consumer UPI largely at zero MDR under Indian rules). On top of that it sells RazorpayX business banking and payouts, RazorpayX Payroll subscriptions, Razorpay POS terminal rentals plus in-store acquiring fees, and Razorpay Capital credit through lending partners. Because gateway margins are thin after bank and network costs, gross profit (~$148 million (₹1,277 crore) in FY25 on ~$439 million (₹3,783 crore) revenue) is the better gauge of the business than headline revenue.

The durability of a company's moat often decides long-term winners. Here is how the competitive advantages of Affirm Holdings, Inc. stack up against those of Razorpay.

Affirm Holdings, Inc. competitive advantage: Affirm underwrites each transaction individually in real time and offers fixed payment schedules without late fees. Its distribution includes integrations with major commerce platforms and merchants, while its funding model uses warehouse facilities, securitizations, and loan-sale partnerships.

Razorpay competitive advantage: Razorpay's edge is developer adoption. Clean APIs, SDKs, plugins for Shopify and WooCommerce, and fast digital onboarding made it a default gateway for Indian startups, and that installed base lets it cross-sell payouts, payroll, POS and credit to merchants who already route money through it.

Future prospects matter as much as current results. The growth strategies below explain how Affirm Holdings, Inc. and Razorpay each plan to expand from here.

Affirm Holdings, Inc. growth strategy: Affirm's disclosed growth priorities include increasing transaction frequency, expanding Affirm Card, adding merchants and platform integrations, entering additional markets, and maintaining diverse funding sources for originated loans.

Razorpay growth strategy: Razorpay's strategy is to widen beyond online checkout. The 2022 Ezetap deal took it into offline POS; RazorpayX extends it into payouts, current accounts and payroll; Razorpay Capital uses merchant transaction data for credit; and Curlec gives it a base in Malaysia. Domestically, moving its holding company to India in 2025 cleared the way for a local stock market listing.

A closer look at the financial trajectory of Affirm Holdings, Inc. and Razorpay rounds out the comparison.

Affirm Holdings, Inc.: Affirm's results depend on transaction volume, credit performance, funding costs, and loan-sale markets. FY2026 revenue was $4.261 billion on $50.2 billion of GMV. Net income was $1.930 billion, but included a $1.45 billion income-tax benefit from releasing a valuation allowance on domestic deferred tax assets.

Razorpay: Razorpay's FY25 consolidated revenue from operations was ~$439 million (₹3,783 crore), up 65% from ~$266 million (₹2,296 crore) in FY24. Gross profit rose 41% to ~$148 million (₹1,277 crore). The company reported a ~$140 million (₹1,209 crore) net loss, which it attributed to ESOP expenses and one-time costs of redomiciling to India (press reports put the reverse-flip tax at about $144 million (₹1,245 crore)). It has raised roughly $741 million from investors including GIC, Peak XV Partners, Z47 (formerly Matrix Partners India) and Tiger Global; its last priced round valued it at $7.5 billion in 2021, while June 2026 reports put its IPO valuation target at $5-6 billion.