Razorpay Prepares IPO, Eyes Up To Rs 4,500 Cr Raise

Fintech firm Razorpay has reportedly started preparations for a possible initial public offering (IPO) by the end of 2026.

Sources said the unicorn has invited bids from merchant bankers, including Kotak Mahindra and Axis Capital, for the proposed public issue. According to reports, the IPO is expected to include a fresh issue of shares worth ₹4,500 crore though the timeline and final size of the offering may still change.

The fintech firm is also reportedly in discussions to raise a pre-IPO round, mainly through a secondary sale to reach a targeted valuation level. “Razorpay is well capitalised and is not looking to immediately raise any primary capital from the private markets,” a source reportedly said. 

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The Bengaluru-based unicorn was last valued at $7.5 billion during its $375 million funding round in 2021. This comes nearly a year after Razorpay’s board approved its conversion into a public entity, marking the first step toward an IPO. 

In May 2024, the company completed its reverse flip by moving its headquarters back to India from the US, paying nearly $150 million in taxes as part of the process.

Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay is an omnichannel payments and banking platform that has expanded into areas such as SME payroll, banking, lending, payments, and insurance. The Bengaluru-based startup has raised over $739 million in funding so far and is backed by investors including Tiger Global, Y Combinator, GIC, Matrix Partners India, and Peak XV Partners.

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On the financial side, the company reported a loss in FY25 due to an ESOP expense of ₹1,209 crore. However, its operating revenue grew 65% year-on-year to ₹3,783 crore from ₹2,296 crore in the previous fiscal.

With this move, Razorpay has joined the growing list of fintech startups preparing for listings on Dalal Street, following companies such as groww and Pine Labs, which went public last year.

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