After years of preparation and a complex relocation of its global headquarters from the U.S. back to India, Razorpay is finally moving into the “execution phase” of its IPO journey. On January 9, reports confirmed that the unicorn has approached investment banks—including Kotak Mahindra Capital and Axis Capital—to begin drafting its red herring prospectus.
The IPO Roadmap
The proposed ₹4,500 crore issue is expected to be a combination of a fresh issue of shares and an Offer for Sale (OFS) by existing investors.
- Timeline: Final listing targeted for Q3 or Q4 of 2026.
- Pre-IPO Round: The company is reportedly exploring a secondary funding round to establish a current valuation benchmark before the public debut.
- Lead Managers: While formal appointments are pending, industry insiders identify Kotak Mahindra and Axis Capital as the frontrunners for the underwriter roles.
Financial Performance: A Surge in FY25
Razorpay enters the IPO process on the back of explosive growth. Its FY25 financial results show a company that is successfully diversifying beyond its core payment gateway business.
| Metric | FY25 Performance | YoY Growth |
| Consolidated Revenue | ₹3,783 Crore | +65% |
| Gross Profit | ₹1,277 Crore | +41% |
| Net Loss (Post-ESOP) | ₹1,209 Crore | — |
| Key Profitability Note | Core Online Payments are now EBITDA Profitable. |
Note: The net loss is largely attributed to one-time costs of nearly $150–200 million in taxes related to the “reverse flip” and heavy ESOP expenses.
The “Ghar Wapsi” Milestone
The IPO would not have been possible without Razorpay’s massive corporate overhaul.
- Reverse Flip: In May 2025, the company officially merged its U.S. entity into its Indian subsidiary, making India its global headquarters.
- Public Conversion: In April 2025, it converted from a “Private Limited” to a “Public Limited” company (Razorpay Software Limited).
- Regulatory Clearance: Having secured a Cross-Border Payment Aggregator license and invested $30 million in the consumer app POP, Razorpay has built a multi-layered ecosystem that appeals to public market investors.
Why This IPO is a “Bellwether”
Razorpay’s debut will be closely watched as a test of investor appetite for high-growth, high-burn Indian fintechs. Unlike the turbulent listings of 2021, the “Class of 2026” (which includes PhonePe and Zepto) is entering a market that demands a clear path to consolidated profitability.
“Our focus is on building a 100-year company. Redomiciling to India was the hardest part; the IPO is simply the next logical step in our growth story.” — Harshil Mathur, CEO & Co-founder
Key Investors Watching the Exit
- Peak XV Partners (Largest institutional stakeholder)
- GIC (Singapore’s Sovereign Wealth Fund)
- Tiger Global Management
- Z47 (Formerly Matrix Partners India)
