Razorpay Launches IPO Preparations, Targets INR 4,500 Cr Offering

Razorpay, a prominent fintech unicorn based in Bengaluru, has officially initiated preparations for a potential initial public offering (IPO) anticipated by the end of 2026. The company is targeting a fresh issue of shares valued at approximately INR 4,500 Cr. This move comes almost a year after Razorpay received board approval to transition into a public company.

The fintech giant has solicited bids from renowned merchant bankers, including Kotak Mahindra and Axis Capital, as part of its public issue strategy. Reports from the Economic Times indicate that while the IPO’s timeline and final valuation are still fluid, Razorpay is simultaneously working on a pre-IPO funding round. This round will primarily consist of a secondary transaction aimed at meeting specific valuation goals.

Sources close to the company noted, “Razorpay is well capitalised and is not looking to immediately raise any primary capital from the private markets.” This statement underscores the firm’s robust financial standing as it approaches the IPO process.

Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay has established itself as an omnichannel payments and banking platform. The company has expanded its services over the years to include SME payroll management, banking, lending, and insurance, contributing to its significant market presence.

Razorpay’s last valuation reached $7.5 billion following a $375 million fundraising round in 2021. Recently, the company underwent a significant restructuring, completing a reverse flip back to India from the United States in May 2024. This strategic move, referred to as “Desh Wapsi,” involved the payment of nearly $150 million in taxes.

Despite facing challenges, including an operating loss in fiscal year FY25 due to an employee stock option plan (ESOP) expense of INR 1,209 Cr, Razorpay reported a remarkable 65% increase in operating revenue. The company’s revenue surged to INR 3,783 Cr from INR 2,296 Cr in the previous fiscal year.

Razorpay joins a growing trend of fintech startups pursuing public listings. Last year, significant players such as Groww and Pine Labs successfully debuted on stock exchanges. Additionally, other lending technology startups like Kreditbee, Fibe, and Moneyview are also preparing to enter the market later this year.

The momentum for new-age technology companies continues to build, with 18 Indian startups having listed on exchanges in 2025, collectively raising over INR 41,000 Cr through public markets. Currently, 20 new-age tech ventures have filed their draft red herring prospectuses with the Securities and Exchange Board of India (SEBI) for potential IPOs, indicating a vibrant pipeline for future listings.

As Razorpay embarks on this significant chapter, its upcoming IPO could mark a pivotal moment not only for the company but also for the broader fintech landscape in India.