Razorpay has integrated its 'Engage' marketing platform with OpenAI’s ChatGPT, allowing Indian brands to run AI-driven advertising campaigns. This strategic move helps the private fintech firm expand its value-added services as it seeks to move beyond its core payment processing business.
Razorpay has entered a strategic partnership with OpenAI to introduce conversational advertising to the Indian market. Through its marketing platform, Engage, the company will allow brands to manage product catalogs and advertising campaigns directly within the ChatGPT ecosystem. This initiative aims to shift how Indian consumers discover products, moving away from traditional keyword-based search advertising toward natural, AI-driven conversations.
For businesses, the integration is designed to automate the way product feeds are presented to users, potentially increasing the relevance of ads based on intent rather than simple search queries. Early pilot programs for this AI-powered advertising include companies such as Tata Neu, Tanishq, Fastrack, and Shaadi.com. Beyond advertising, the collaboration also extends to developing 'Agentic Payments' in partnership with the National Payments Corporation of India, which seeks to enable consumers to complete transactions directly within AI-based conversations.
This partnership represents a critical pivot for the company. As the Indian fintech sector faces significant pressure from the zero-fee mandate on UPI transactions, which limits the profitability of core payment processing, players like Razorpay are increasingly focusing on software and value-added services to drive revenue growth. By embedding its infrastructure into the AI discovery layer, the firm is attempting to secure a larger role in the customer's journey, from initial product search to final checkout.
While this strategic move signals innovation, investors and market observers should note that Razorpay remains a private company and is not listed on the NSE or BSE. The company completed a 'reverse flip' of its parent entity from the United States back to India in May 2026. In its latest financial reports for the fiscal year 2025, the company reported a net loss of Rs 1,209 crore, even as it achieved 65% revenue growth. The high cost of scaling such technology, combined with intense competition in the digital marketing and fintech space, will be key factors in the company's long-term financial health.
There are also operational risks associated with this model. Conversational advertising relies on AI systems that can produce unpredictable interactions, posing potential challenges for brand safety and messaging control. Additionally, the viability of business models built on top of third-party AI platforms depends on the cost-efficiency of compute-related expenditures, which are significant in the current AI landscape. As the company continues its expansion, the primary focus will remain on how effectively it can monetize these new 'agentic' services to offset the limitations of its payment business.