Razorpay Eyes IPO Amid Valuation Drop, Targets $600–700 Mn Raise

Razorpay, a fintech unicorn, is getting ready to file for an initial public offering (IPO) in secret in the next few weeks, according to The Economic Times. 

The company said that the digital payments company wants to raise between $600mn and $700mn, with a projected value of $5bn to $6bn. This is a drop from its peak value of $7.5bn more than four years ago.

Companies file their IPO papers with the Securities and Exchange Board of India (Sebi) in a private way so that they don't have to share their financial and other business information with the public right away. This method has been used by new-age start-ups like Swiggy, Groww, Meesho and Zepto, among others, in the past few years.

This move comes at a time when PhonePe, paused its IPO plans in March, citing geopolitical tensions stemming from the West Asia conflict. ET reported the company’s decision was also because the $7bn valuation offered by public market investors was more than 50% below its on-paper valuation.

Concerns over growth sustainability and the road to profitability could weigh on the IPO’s pricing for Razorpay, said people aware of the matter. Public market investors in India have grown increasingly selective, favouring companies with clear profitability timelines or clocking big growth numbers.

The Economic Times further reported that investors are increasingly pricing new-age startups more conservatively in public markets due to underwhelming post-listing performance of several firms, although companies demonstrating strong growth may still attract interest at the right valuation, even if they remain loss-making.

The company’s IPO preparations have been under discussions for some time. Razorpay completed its reverse flip to India in May 2025, shifting its domicile from the US, a move that cost it about $150mn in taxes. It also received board approval to convert itself into a public limited company, a key regulatory precondition for listing.

Valuation Reset Signals Shift

Industry watchers note that Razorpay’s IPO move reflects a broader recalibration in India’s startup valuations, with investors prioritising profitability and sustainable growth over aggressive expansion.

Analysts told The Economic Times that confidential filings are gaining traction as firms test market sentiment while limiting early disclosure risks for upcoming listings.