Fintech unicorn Razorpay has filed its draft red herring prospectus (DRHP) for a confidential initial public offering (IPO), seeking to raise between $600 million and $700 million. This move comes as the company aims for a valuation of $5 billion to $6 billion, a decrease from its last private valuation of $7.5 billion, according to a report by MoneyControl.Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay has established itself as a comprehensive payments and financial services platform, catering to over 80 lakh businesses, primarily small businesses and startups. The company has raised over $800 million to date, backed by notable investors including Tiger Global, Y Combinator, and Lightspeed.Earlier this year, Razorpay appointed investment bankers such as Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi to facilitate the IPO process. In FY25, the company reported a significant operating revenue increase of 65%, reaching ₹3,783 crore, although it also incurred a loss due to an ESOP expense of ₹1,209 crore and restructuring costs related to its domicile shift to India ahead of the IPO.As Razorpay moves forward with its IPO plans, the startup ecosystem will be closely watching its performance and the implications for the broader fintech landscape in India.
