BENGALURU: Digital payments unicorn Razorpay has officially kicked off its preparations for a stock market debut, signaling its intent to join a growing list of Indian new-age tech companies going public. The company is reportedly looking to raise up to ₹4,500 crore ($505 million) in fresh capital through an Initial Public Offering (IPO) expected toward the end of 2026.
Merchant Banker Engagement
According to people familiar with the matter, the Bengaluru-based fintech giant has invited several top-tier merchant banks to pitch for the IPO mandate. Leading contenders currently include Kotak Mahindra Capital and Axis Capital, who are expected to play a central role in underwriting the issue. While the formal process has begun, the final timeline and exact issue size remain subject to market conditions and board approval.
Strategic Re-domiciling and "Reverse Flip"
Razorpay’s road to the IPO follows a massive corporate restructuring. In 2025, the company completed a "reverse flip," moving its headquarters from the United States back to India. This transition was a costly but necessary precursor to a domestic listing, involving a tax payout of approximately $150 million. Earlier in April 2025, the company also received board approval to convert from a private to a public limited company, a key regulatory milestone.
Financial Performance
The fintech major enters its IPO phase with strong operational momentum. In FY25, Razorpay recorded:
Consolidated Revenue: ₹3,783 crore (a 65% year-on-year surge).
Gross Profit: ₹1,277 crore (up 41%).
Net Position: Despite strong revenue, the company reported a net loss, primarily attributed to one-time restructuring costs and ₹1,209 crore in Employee Stock Ownership Plan (ESOP) expenses.
The company’s growth has been fueled by its diversified product suite, including its core payment gateway, point-of-sale (POS) services, international operations, and the business banking platform, RazorpayX.
Valuation and Funding History
Razorpay was last valued at $7.5 billion following a $375 million funding round in 2021. To date, the firm has raised over $740 million from high-profile investors, including GIC, Peak XV Partners, Z47 (formerly Matrix Partners India), and Tiger Global.
Sources indicate that the company may also explore a pre-IPO secondary transaction before the public listing. This move would allow early investors and employees to liquidate part of their holdings while setting a definitive valuation benchmark for the public markets