Afterpay vs Razorpay: Revenue, Profit and Business Model
Afterpay had ~$596.4M of annual revenue in FY2021 and a net loss of ~$102.8M. Razorpay had ~$438.8M of annual revenue in FY2025 and a net loss of ~$140.2M.
Latest financial snapshot
Financial summary
Afterpay
Afterpay reported standalone results in Australian dollars before Block acquired it. Total income rose from ~$903,000 (A$1.4 million) in FY2016 to ~$596 million (A$924.6 million) in FY2021, while FY2021 statutory loss after tax was ~$103 million (A$159.4 million). Block does not publish a comparable standalone Afterpay revenue series after the January 2022 close. Afterpay was acquired by Block, Inc. (formerly Square) in 2022 for approximately $29 billion, one of the largest acquisitions in Australian corporate history.
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
Afterpay
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2021 | ~$596.4M | ~-$102.8M | -17.2% | +78.1% | Source |
| FY2020 | ~$334.9M | — | — | +96.6% | Source |
| FY2019 | ~$170.3M | — | — | +85.6% | Source |
| FY2018 | ~$91.8M | — | — | +521.4% | Source |
| FY2017 | ~$14.8M | — | — | +1535.7% | Source |
| FY2016 | ~$903,000 | — | — | — | 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
Afterpay
- Merchant fees
Not formally reported
Fees paid by merchants on transactions processed through Afterpay were the principal source of pre-acquisition income.
- Late fees
Not formally reported
Afterpay also earned capped late fees from overdue customer installments. A current standalone percentage is not disclosed.
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
Afterpay
How it makes money
Before the Block acquisition, Afterpay earned most income from merchant fees on purchases processed through its platform, with a smaller contribution from customer late fees. Customers generally paid four installments over six weeks and paid no interest. Block now reports Afterpay within its consolidated results rather than as a standalone public company.
Growth strategy
Block stated at closing that it intended to add Afterpay BNPL to Square checkout, let Afterpay customers manage installments in Cash App, and help Cash App customers discover sellers and BNPL offers. Subsequent expansion has focused on those seller and consumer connections.
Competitive advantage
Afterpay combines installment checkout with a merchant directory and an established consumer brand. Block can connect the product to Square sellers and Cash App customers, although Block identifies merchant retention and product integration as acquisition risks.
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 Afterpay vs Razorpay
Which company has higher revenue — Afterpay Limited or Razorpay?
Afterpay Limited had ~$596.4M (FY2021), while Razorpay had ~$438.8M (FY2025). By latest annual revenue, Afterpay Limited 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.
How does revenue per employee compare for Afterpay Limited and Razorpay?
Afterpay Limited has $459k / 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 Afterpay Limited and Razorpay make money?
Afterpay Limited and Razorpay generate revenue in fundamentally different ways. Afterpay Limited: Before the Block acquisition, Afterpay earned most income from merchant fees on purchases processed through its platform, with a smaller contribution from customer late fees. Razorpay: Razorpay earns most of its money from transaction fees.
Is Afterpay Limited bigger than Razorpay?
By last reported revenue, Afterpay Limited (~$596.4M (FY2021)) 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 Afterpay vs Razorpay overview