Fintech major Razorpay has begun early preparations for a potential IPO, with a listing targeted around the end of 2026, according to the ET report.
The Bengaluru-based company has invited proposals from merchant bankers, including Kotak Mahindra Capital and Axis Capital, to manage the proposed public issue, the report noted.
As per the report, the IPO is expected to include a fresh issue of shares worth about Rs 4,500 crore. The final size and timing of the offering, however, remain subject to market conditions and board approvals.
Alongside the IPO process, Razorpay is also exploring a pre-IPO funding round, largely through secondary stake sales, to establish a valuation benchmark ahead of a listing. Sources cited in the report said the company is well capitalised and is not looking to raise immediate primary capital from private markets.
Razorpay was last valued at around $7.5 billion following a $375 million fundraise in 2021. The move towards a public listing comes nearly a year after the company’s board approved its conversion into a public limited entity, a procedural step required ahead of an IPO.
In May 2024, the startup also completed a reverse flip, re-domiciling its headquarters to India from the US, and paid nearly $150 million in taxes as part of the process, often referred to as “Desh Wapsi”.
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay operates an omnichannel payments and banking platform and has steadily expanded its product suite over the years. Its offerings now span payment gateways, point-of-sale solutions, business banking through RazorpayX, SME payroll management, lending, insurance, loyalty programmes and cross-border payments.
The company has also acquired a majority stake in POP UPI for about $30 million and secured a cross-border payment aggregator licence from the Reserve Bank of India, strengthening its international payments capabilities.
On the financial front, Razorpay reported consolidated operating revenue of Rs 3,783 crore in FY25, a year-on-year increase of about 65% from Rs 2,296 crore in the previous fiscal. Gross profit stood at Rs 1,277 crore. The company, however, reported a net loss for the year, largely due to employee stock ownership plan expenses of Rs 1,209 crore and one-time costs linked to its re-domiciling exercise.
Razorpay has raised more than $739 million to date and counts investors such as Tiger Global, Y Combinator, GIC, Matrix Partners India, Peak XV Partners and Z47 among its backers.
