Razorpay Plans Confidential IPO Filing

Fintech unicorn Razorpay is preparing to confidentially file draft papers for an initial public offering (IPO) in the coming weeks, according to ET media reports.

The Bengaluru-based digital payments firm is expected to raise between USD 600 million and USD 700 million with a valuation of around USD 5–6 billion. This marks a decline from its peak valuation of USD 7.5 billion recorded more than four years ago.

The confidential filing route allows companies to submit IPO documents to the Securities and Exchange Board of India without immediately making financial and operational details public. Several new-age startups, including Swiggy, Groww, Meesho and Zepto, have adopted this approach in recent times.

Razorpay’s IPO plans come amid a cautious environment for public listings. Recently, PhonePe, backed by Walmart, paused its IPO preparations due to geopolitical uncertainties linked to the West Asia conflict. Market participants suggest that such external factors, along with investor scrutiny, may influence how Razorpay’s offering is priced.

Analysts indicate that concerns around sustainable growth and profitability could weigh on investor sentiment. Public market investors in India are increasingly favouring companies with clear profit visibility or strong growth trajectories, making valuation expectations more conservative compared to previous years.

Razorpay has been laying the groundwork for its public listing over the past year. In May 2025, the company completed its reverse flip to India, shifting its domicile from the US, a move that reportedly incurred tax costs of about USD 150 million. It has also converted into a public limited company, a necessary regulatory step before listing.

Financially, the company reported strong revenue growth. Its consolidated operating revenue rose 65% year-on-year to INR 3,783 crore in FY25, compared with INR 2,296 crore in the previous year. However, it posted a net loss of INR 1,209 crore, largely due to employee stock ownership plan (ESOP) expenses and costs associated with its domicile transition.

Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay competes with firms such as PayU, Paytm, Pine Labs and Cashfree.

The company, authorised as a payment aggregator by the Reserve Bank of India, offers a range of services including online and offline payments, cross-border transactions and business banking through RazorpayX. It also entered the consumer payments segment by acquiring a majority stake in Pop last year.

Razorpay processes around USD 180 billion in total payment value, up from USD 150 billion in 2023 and USD 100 billion a year earlier. Growth has been driven by its payment gateway, point-of-sale solutions, loyalty programmes and international operations.