While that could be a great exit, “we obviously only want to go public when we’re in a position to consistently deliver profits on a quarterly basis,” he added. To prepare for the listing, on the compliance side Razorpay currently has a group of experts advising the board of directors, and on the business side, work is currently underway. Although the payments business has already reached the break-even point, the company aims to strengthen cash flow and expects to improve EBIDTA over the next two years.
Other areas such as RazorpayX, offline POS business and international business are in an expansion phase and are expected to reach break-even in the next 12-18 months. “Therefore, we would like to go public when all four major lines of business are EBITDA positive and payments generate significant cash. We believe that will put us in a good position to go public.” he says.
With new verticals still finding ways to scale, the founders feel that moving away from the public markets will give them room to experiment and provide needed business agility. The company is looking to leverage deeper into its omnichannel payments solutions, saying, “There’s a lot of room for our digital payments to continue to expand, both online and offline. We’re looking to leverage deeper funds with our Neo banking products. and this will continue over the next two to three years,” said Shashank Kumar, co-founder and MD. Razorpay is also in the process of moving its operations back from the US to India, which is expected to happen early next year.
