- E-commerce Merchants in Rajkot increase by 210%, fueling the city’s next wave of digital commerce
- 150% surge in SaaS companies, signaling Rajkot’s swift embrace of cutting-edge digital solutions
INDIA, RAJKOT | 24th SEPTEMBER 2025: Razorpay, India’s Leading Payment Gateway, today unveiled its digital payments report on Rajkot titled “The Rise of Rajkot: Gujarat’s Digital Payments Powerhouse.”The reportanalyzes payment trends in Rajkot between September 2024 and August 2025 to uncover how the city is fast emerging as Gujarat’s digital growth engine. Once known mainly for its traditional industries, Rajkot today is scripting a new chapter where MSMEs, jewelers, educators, SaaS (Software as a Service), and e-commerce merchants are embracing digital commerce with confidence, trust, and scale.
Here are some key insights from the report. All findings in this report are based on transactions held on the Razorpay platform between September 2024 and August 2025. Offline data is from Razorpay’s offline payments platform, Razorpay POS.
- Rajkot’s Digital Growth Story: Quality Over Quantity
From September 2024 to August 2025, Rajkot stood out in India’s digital economy, not for how many transactions happened, but for how valuable each one was. With an average online transaction of ₹6,200, the city became a center for high-value digital spending.
Businesses in Rajkot, especially MSMEs, showed strong credit approval rates, reflecting their financial strength. Over 50 large companies also took growth loans from Razorpay Capital to expand their operations. Sectors like fashion & lifestyle, SaaS (Software as a Service), education, andjewelry led the charge, showing that Rajkot isn’t just going digital; it’s building a strong, stable, and future-ready economy based on a quality-driven economy for the future.
- Rajkot’s Small Businesses Take a Big Digital Step
Over the past year, Rajkot’s small businesses and local shops have quickly moved into the digital world, mixing tradition with new technology to grow in exciting ways.
- The E-commerce sector witnessed massive momentum, with merchants growing by 210% on the Razorpay platform
- 150% surge in SaaS companies, signaling Rajkot’s swift embrace of cutting-edge digital solutions
- The Arts and Collectiblessector also grew, with 145% more businesses going online and their sales increasing by 38%, showing how culture and craft are finding new digital audiences.
- Cosmetics shops went digital too, with 120% more stores and sales up by 37%.
- Even the Charity sector joined in, with 114% more organizations using digital tools to reach people and raise support.
- Fashion and lifestyle businesses grew by 102%, showing Rajkot’s strong spirit of entrepreneurship.
All these changes show how Rajkot’s small businesses are not just catching up with the digital age – they are creating brand-new ways to sell and connect with customers online.
- Small City, Big Moves: Rajkot Beating Bigger Cities in Going Digital
Between September 2024 and August 2025, Rajkot became one of the fastest-growing cities for Razorpay in Gujarat at the national level. The number of businesses using Razorpay in Rajkot grew by 64%, placing it 4th in Gujarat after Bhavnagar (89%), Jamnagar (78%), and Surat (68%). But what stood out was how quickly Rajkot adopted digital payments, going beyond expectations.
The city’s total payment volume (TPV) also grew by 28% year-on-year. Most impressive of all, Rajkot now accounts for 40% of all Razorpay transactions in Gujarat, even ahead of bigger cities like Ahmedabad and Surat, making it a true digital payments leader in the state.
- Mixing Online and Offline: Rajkot’s New Way of Doing Business
From September 2024 to August 2025, Rajkot showed that successful business isn’t just about selling online or offline – it’s about using both together.
Around 12% of local businesses started using omnichannel payments, meaning they accepted money both in physical stores and online. Almost half of these businesses also sold products on the internet. This approach helped them connect better with customers and handle more valuable sales. On average, merchants completed 80 to 100 payment transactions every month, with each sale worth about ₹6,200 – more than twice the national average of ₹2,500.
Here’s how different sectors did & how Rajkot is proving that combining offline and online sales is the future of commerce.
- Jewellery: Sales value went up 40%, and the number of transactions increased by 18%, beating the national average.
- Grocery: Sales and the number of transactions both grew by over 20%, while the rest of the country saw little change.
- Education: More businesses started accepting payments online every month, with sales steadily rising.
Reflecting on the trends, Rahul Kothari, Chief Operating Officer, Razorpay, said, “Rajkot is a fascinating story of how India’s tier-II cities are shaping the future of digital commerce. The city’s MSMEs are not just embracing technology, but doing so with confidence, discipline, and scale. What’s remarkable is the quality of commerce here, with customers spending significantly more per transaction, businesses scaling faster with access to credit, and entire sectors reinventing themselves for the digital era. Rajkot today commands 40% of Gujarat’s transaction volumes on the Razorpay platform, a clear sign that India’s digital transformation is no longer metro-led alone, but is being powered by cities like Rajkot.”
Kothari added, “Between September 2024 and August 2025, Rajkot’s growth on the Razorpay platform was nothing short of extraordinary, marked by a 64% surge in merchants, and strong sectoral booms across fashion & lifestyle, SaaS, education, and jewellery. These shifts reflect not only entrepreneurial energy but also the trust Rajkot places in secure, compliant financial systems. For us at Razorpay, this is more than just growth metrics; it’s about enabling businesses to dream bigger, scale faster, and build with trust at the core.”
Rajkot’s growth reflects India’s digital journey—driven by resilience, innovation, and trust. As UPI and digital payments transform commerce, Rajkot proves the future of India’s digital economy lies not just in metros, but in its vibrant tier-II cities. Razorpay, being India’s leading payment processor with an annualized TPV of over $180 billion, powering payments, banking, payroll, and lending for more than 105 of India’s 119 unicorns, stands at the forefront of this transformation, building a secure, seamless, and scalable financial ecosystem for millions of businesses. India’s digital story is poised to accelerate further, and Razorpay is proud to support businesses in this way.
