Affirm vs Razorpay: Revenue, Profit and Business Model
Affirm had $4.3B of annual revenue in FY2026 and $1.9B of net income. Razorpay had ~$438.8M of annual revenue in FY2025 and a net loss of ~$140.2M.
Latest financial snapshot
Financial summary
Affirm
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.
Revenue and profit by year
Affirm
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $4.3B | $1.9B | 45.3% | +32.2% | Source |
| FY2025 | $3.2B | $52.2M | 1.6% | +38.8% | Source |
| FY2024 | $2.3B | -$517.8M | -22.3% | +46.3% | Source |
| FY2023 | $1.6B | -$985.3M | -62.1% | +17.7% | Source |
| FY2022 | $1.3B | -$707.4M | -52.4% | +55.0% | Source |
| FY2021 | $870.5M | -$441M | -50.7% | +70.8% | Source |
| FY2020 | $509.5M | -$112.6M | -22.1% | +92.7% | Source |
| FY2019 | $264.4M | -$120.5M | -45.6% | — | Source |
Razorpay
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$438.8M | ~-$140.2M | -32.0% | +64.8% | Source |
| FY2024 | ~$266.3M | — | — | +0.7% | Source |
| FY2023 | ~$264.4M | — | — | — | Source |
Where the revenue comes from
Affirm
- Merchant network revenue
Not separately reported as a percentage
Fees earned when merchants use Affirm's payment network to facilitate transactions.
- Card network revenue
Not separately reported as a percentage
Network revenue associated with virtual cards and Affirm Card transactions.
- Interest income
Not separately reported as a percentage
Interest earned on loans held for investment.
- Gain on sales of loans
Not separately reported as a percentage
Gains recognized when Affirm sells loans to third-party investors.
- Servicing income
Not separately reported as a percentage
Fees earned for servicing loans owned by third parties.
Razorpay
- Payment gateway fees
Not formally reported
A merchant discount rate on each successful payment; published pricing is 2% for most domestic cards, net banking and wallets. This is most of revenue.
- RazorpayX
Not formally reported
Business banking, payouts and payroll subscriptions.
- Razorpay POS
Not formally reported
Terminal rentals and in-store acquiring fees.
- Razorpay Capital
Not formally reported
Credit offered through lending partners. FY25 revenue was ~$439 million (₹3,783 crore) and gross profit ~$148 million (₹1,277 crore).
Business model and strategy
Affirm
How it makes money
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.
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.
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
How it makes money
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).
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.
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.
Questions about Affirm vs Razorpay
Which company has higher revenue — Affirm Holdings, Inc. or Razorpay?
Affirm Holdings, Inc. had $4.3B (FY2026), while Razorpay had ~$438.8M (FY2025). By latest annual revenue, Affirm Holdings, Inc. is the larger business, with Razorpay showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Affirm Holdings, Inc. vs Razorpay?
Affirm Holdings, Inc. has a market capitalisation of $24.0B. A public market cap figure for Razorpay was not available (it may be privately held).
How does revenue per employee compare for Affirm Holdings, Inc. and Razorpay?
Affirm Holdings, Inc. has $1.81M / employee in revenue per employee, while Razorpay has $125k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Affirm Holdings, Inc. and Razorpay make money?
Affirm Holdings, Inc. and Razorpay generate revenue in fundamentally different ways. Affirm Holdings, Inc.: 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. Razorpay: Razorpay earns most of its money from transaction fees.
Is Affirm Holdings, Inc. bigger than Razorpay?
By last reported revenue, Affirm Holdings, Inc. ($4.3B (FY2026)) is the larger company compared to Razorpay (~$438.8M (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Affirm vs Razorpay overview