Bengaluru-based fintech giant Razorpay has reportedly secured approval from the Securities and Exchange Board of India (SEBI) for its highly anticipated initial public offering (IPO). The proposed public issue is expected to raise up to Rs 6,000 crore, equivalent to approximately $633 million, with a potential listing targeted for early 2027.
Sources familiar with the development indicate that the Y Combinator and Peak XV-backed company is aiming for a valuation of around $5 billion upon listing. This move follows Razorpay's strategic return to India, completing its reverse-flip process in May 2025, consolidating its operations under Indian jurisdiction after merging its US-registered parent entity with its Indian subsidiary, Razorpay Software India Pvt Ltd.
IPO Details and Market Context
Razorpay confidentially filed its draft papers with SEBI in June 2026. While the company initially considered a larger IPO aiming for $700 million at a $7 billion valuation, current investor sentiment in public markets has prompted a more conservative approach. The final issue size and timing will ultimately depend on prevailing market conditions and investor demand.
Key financial institutions appointed as bankers for the proposed issue include Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi.
Financial Performance and Strategic Moves
For the financial year 2025 (FY25), Razorpay reported a significant 65% year-on-year increase in consolidated revenue, reaching Rs 3,783 crore, up from Rs 2,296 crore in the previous fiscal year. This growth was primarily driven by its robust payment gateway business, RazorpayX, and expanding international operations. Gross profit also saw a rise, reaching Rs 1,277 crore from Rs 906 crore.
Despite strong revenue growth, the company recorded a net loss of Rs 1,209 crore in FY25. This loss is attributed primarily to one-time expenses related to its employee stock ownership plan (ESOPs) and tax liabilities incurred during the reverse-flip process.
Company Background and Competition
Founded in 2014 by IIT Roorkee alumni Harshil Mathur and Shashank Kumar, Razorpay provides comprehensive payment processing and banking solutions to businesses across India. Its investor base includes prominent firms such as GIC, Peak XV Partners, and Tiger Global.
Razorpay operates in a competitive Indian fintech landscape, vying with major players like Prosus-backed PayU, Cashfree Payments, Pine Labs, PhonePe, and Paytm. Several of these competitors, including Pine Labs and Paytm, are already publicly listed, while others like PayU and PhonePe have also signaled intentions for Indian market listings in the near future.
With SEBI's approval now secured, Razorpay is poised to continue its preparations for what is expected to be one of India's significant tech IPOs in the coming years, contingent on a favorable market environment.