Razorpay Prepares for IPO, Plans to Raise Up to INR 4,500 Cr

Digital payments firm Razorpay has reportedly started early preparations for an initial public offering (IPO) and is considering raising up to INR 4,500 crore (around USD 505 million) through the issue.

According to a report by ET, the Bengaluru-based company has invited several merchant bankers to pitch for the IPO mandate, with Kotak Mahindra Capital and Axis Capital said to be among the leading contenders.

The IPO is expected to be launched towards the end of the year, although discussions are still at a preliminary stage and details such as the final timeline and issue size have not been decided. People familiar with the matter told that Razorpay is also exploring a possible pre-IPO funding round. This round is likely to be largely secondary in nature, allowing existing investors to partially exit rather than bringing in significant new primary capital.

Razorpay was last valued at USD 7.5 billion in 2021, when it raised USD 375 million during the peak of the startup funding cycle. The company remains well-capitalised and does not have immediate plans to raise fresh primary capital from private investors, the report added.

In April last year, Razorpay converted itself into a public limited company, a move generally seen as an important step ahead of a stock market listing. Around the same time, the fintech firm completed its reverse flip to India and reportedly paid close to USD 150 million in taxes related to the redomiciling process.

More recently, the company acquired a majority stake in POP UPI for USD 30 million and secured a cross-border payment aggregator licence from the Reserve Bank of India.

Founded by Harshil Mathur and Shashank Kumar, Razorpay has raised over USD 741 million in funding to date. Its investor base includes Singapore's sovereign wealth fund GIC, Peak XV Partners, Z47 (formerly Matrix Partners India), and Tiger Global.

On the financial side, Razorpay reported a 65% year-on-year increase in consolidated revenue to INR 3,783 crore in FY25, driven by growth across its payment gateway, banking, point-of-sale, and international operations. Gross profit rose 41% to INR 1,277 crore. However, the company posted a net loss, largely due to ESOP-related expenses and one-time costs linked to its shift back to India.

Razorpay is among several new-age companies planning to tap public markets over the next 12 to 18 months, alongside firms such as PhonePe, Zepto, Oyo, and Infra.Market.