Razorpay Kicks off IPO Preparations for ₹4,500Cr Listing, Invites Bank Pitches

Digital payments firm Razorpay has begun formal preparations for an initial public offering that could raise up to ₹4,500 crore, ET reported. The company has invited merchant banks to pitch for the IPO mandate, with Kotak Mahindra Capital and Axis Capital among the leading contenders to underwrite the issue. While Razorpay is working toward a possible listing by the end of the year, the final timing and size of the offering will reportedly depend on market conditions and board approval.

The Bengaluru-based fintech has asked investment banks to submit proposals to manage the public issue and is also exploring a pre-IPO round, largely through secondary stake sales, to help establish a valuation benchmark ahead of any listing. Sources said Razorpay is well capitalised and does not plan to raise significant primary capital from private investors in the near term, suggesting the IPO could include a sizeable secondary component that allows early investors and employees to secure liquidity.

Valuation & Investor Base

Razorpay was last valued at around $7.5 billion following a $375 million funding round in 2021 and counts high-profile investors such as Singapore’s GIC, Peak XV Partners, Z47 (formerly Matrix Partners India) and Tiger Global among its backers. Founders Harshil Mathur and Shashank Kumar continue to hold significant stakes in the company.

Industry trackers reportedly estimate that Razorpay has raised roughly $742–$742.5 million to date. Its IPO push comes as a broader set of new-age Indian fintech and consumer internet companies prepare to access public markets over the next 12 to 18 months.

The company’s growth has been driven by an expanding product portfolio that includes payment gateway services, point-of-sale (POS) solutions, loyalty programmes, its business banking arm RazorpayX, and international operations.

In FY25, Razorpay reported consolidated revenue of ₹3,783 crore, a year-on-year increase of about 65%, and gross profit of ₹1,277 crore. However, despite the strong top-line growth, the company posted a net loss for the year, largely due to significant employee stock ownership plan (ESOP) expenses of ₹1,209 crore and one-time costs related to its redomiciling to India.

Pre-Listing Moves

Ahead of its IPO plans, Razorpay has been active on several strategic fronts. In May last year, the company completed a reverse flip, shifting its domicile back to India from an overseas jurisdiction, a move increasingly adopted by late-stage Indian startups to streamline regulatory compliance and ease the path to a domestic listing.

Razorpay has also converted into a public limited company and continued to broaden its payments footprint. It acquired a majority stake in POP UPI for around $30 million and obtained a cross-border payment aggregator licence from the Reserve Bank of India, strengthening its capability to process international transactions.