Indian fintech company Razorpay, which announced its entry into the Singapore market last week, said it would set the group's profit as an important milestone in its listing and plans to launch its initial public offering (IPO) plan within the next three years.

The technology company, backed by the Singapore Government Investment Company (GIC), has profitable core payments, but is still in a loss-making state at the group level, and new banking and loan services have not yet achieved a break-even.

Currently, the company focuses on achieving comprehensive profitability in all business areas. “We are two to three years away from launching the listing plan,” Shashank Kumar, co-founder and managing director of Razorpay, told Bloomberg.

Headquartered in Bangalore, India's third largest city, Razorpay is valued at $7.5 billion in its latest round of financing in 2021.

The company's strong performance in digital payments business drove the company's net profit to rise by 360% to Rs 340 million (approximately SGD 5.19 million) in the fiscal year ended March 31, 2024.

Announced entry into the Singapore market

To drive revenue growth, Razorpay is expanding to overseas markets. Razorpay entered the Singapore market last Friday (March 7) and plans to enter the Thai, Vietnam, Philippines and the Middle East markets in the next few years. Singapore is the company's second market layout in Southeast Asia after Malaysia.

Razorpay hopes to seize the opportunity of growth in the local digital payments market, which is expected to triple to $180 billion by 2029. Kumar pointed out that he hopes to obtain a payment license in Singapore and cooperate with local payment institutions to optimize their digital payment products.

Razorpay plans to serve 5,000 companies in Southeast Asia by 2027, and expand to multiple markets during this period. Currently, the company has 60 employees in Malaysia and about 10 employees in Singapore, while the company has a total of 3,300 employees, most of which are located in India.

The company plans to expand its team to double its existing size in Singapore, but the specific recruitment time and pace has not yet been determined.

Razorpay said in a statement that it has raised a total of $741.5 million from investors including GIC, Tiger Global Management, Peak XV, Salesforce Ventures and Y Combinator.