Klarna vs Razorpay: Revenue, Profit and Business Model
Klarna had $3.5B of annual revenue in FY2025 and a net loss of $273M. Razorpay had ~$438.8M of annual revenue in FY2025 and a net loss of ~$140.2M.
Latest financial snapshot
Financial summary
Klarna
Klarna's revenue grew from $2.28 billion in 2023 to $2.81 billion in 2024 and $3.51 billion in 2025, according to its 2025 Form 20-F. Net income swung from a $244 million loss in 2023 to a $21 million profit in 2024, then back to a $273 million loss in 2025, even as adjusted operating profit reached $65 million. Q4 2025 was its first billion-dollar quarter at $1.082 billion of revenue on $38.7 billion of GMV. In Q2 2026, revenue rose 27% to $1.042 billion, transaction margin dollars rose 42% to $446 million and net income was $9 million, against a $53 million loss a year earlier. The market cap was about $5.2 billion in late September 2026, well below the roughly $15 billion valuation at its September 2025 IPO.
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
Klarna
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $3.5B | -$273M | -7.8% | +24.8% | Source |
| FY2024 | $2.8B | $21M | 0.7% | +23.5% | Source |
| FY2023 | $2.3B | -$244M | -10.7% | — | 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
Klarna
- Merchant fees
Not formally reported
Fees charged to merchants on Klarna transactions; the largest source of revenue.
- Consumer interest and fees
Not formally reported
Interest on Fair Financing and other credit products, plus late fees where permitted.
- Card and memberships
Not formally reported
Interchange from the Klarna Card and subscription revenue from Memberships, which grew more than 600% in Q2 2026.
- Advertising and other
Not formally reported
Sponsored placements and affiliate revenue in the Klarna app.
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
Klarna
How it makes money
Klarna earns money on both sides of a purchase. Merchants pay Klarna a fee on each transaction because offering installments tends to lift conversion and basket size; Klarna pays the merchant upfront and carries the repayment risk (its published US standard rate for Pay in 4 has been 3.29% plus $0.30).
Growth strategy
Klarna calls itself an 'everyday finance network'. The strategy has three parts: distribution through large acquirers and platforms (J.P. Morgan Payments went live in August 2026), higher-frequency products such as the Klarna Card and paid Memberships (2 million subscribers in Q2 2026, eight times a year earlier), and higher-yield lending such as Fair Financing, which 256,000 merchants offered by Q2 2026.
Competitive advantage
Klarna's edge is scale and funding. It reaches more than 120 million active consumers and over 1.2 million merchants in 26 markets, and distribution deals with payment platforms such as J.P. Morgan Payments, Stripe and Adyen switch Klarna on for merchants without a new integration.
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 Klarna vs Razorpay
Which company has higher revenue — Klarna Group plc or Razorpay?
Klarna Group plc had $3.5B (FY2025), while Razorpay had ~$438.8M (FY2025). By latest annual revenue, Klarna Group plc is the larger business, with Razorpay showing a smaller revenue base.
What is the market cap of Klarna Group plc vs Razorpay?
Klarna Group plc has a market capitalisation of $5.2B. A public market cap figure for Razorpay was not available (it may be privately held).
How does revenue per employee compare for Klarna Group plc and Razorpay?
Klarna Group plc has $1.24M / 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 Klarna Group plc and Razorpay make money?
Klarna Group plc and Razorpay generate revenue in fundamentally different ways. Klarna Group plc: Klarna earns money on both sides of a purchase. Razorpay: Razorpay earns most of its money from transaction fees.
Is Klarna Group plc bigger than Razorpay?
By last reported revenue, Klarna Group plc ($3.5B (FY2025)) 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 Klarna vs Razorpay overview