In a major move for the Indian fintech landscape, Razorpay is reportedly preparing to file for an initial public offering (IPO) as early as next week (April 2026). The Bengaluru-headquartered payments giant is expected to file its draft papers confidentially with SEBI, joining a growing list of new-age startups like Swiggy and Zepto that have chosen this private route.
1. IPO Details: Valuation Reset and Capital Raise
The proposed IPO marks a strategic “valuation reset” as the company aligns with more conservative public market expectations compared to the hyper-growth peaks of 2021.
- Target Valuation: $5 Billion – $6 Billion. This is a notable step down from its peak private valuation of $7.5 billion in late 2021.
- Issue Size: Looking to raise between $600 million and $700 million (approx. ₹5,000–₹5,800 crore).
- Lead Bankers: The company has reportedly invited pitches from merchant bankers, with Kotak Mahindra Capital and Axis Capital among the frontrunners to manage the issue.
- Secondary Sale: The IPO is expected to include a significant secondary component, allowing early investors and employees to exit, alongside a fresh issue of shares.
2. Financial Performance (FY25)
Razorpay’s financials show strong top-line growth, though one-time costs associated with its structural shift have impacted the bottom line.
| Metric | FY25 Performance | YoY Growth |
| Operating Revenue | ₹3,783 Crore ($407M) | +65% |
| Gross Profit | ₹1,277 Crore | +41% |
| Net Loss | ₹1,209 Crore | — |
The Loss Factor: The net loss in FY25 was primarily driven by ₹1,209 crore in ESOP expenses and one-time tax payments (approx. $150M) related to its “reverse flip” (redomiciling) from the US to India. CEO Harshil Mathur noted that the core online payments business is already EBITDA profitable.
3. Strategic “Desh Wapsi” Completed
Razorpay has cleared all regulatory hurdles required for an Indian listing:
- Reverse Flip: In May 2025, the company successfully moved its parent entity from the US back to India, a process that cost nearly $150 million in taxes.
- Public Conversion: The board recently approved the conversion of the startup into a Public Limited Company, a mandatory legal step before filing a DRHP.
- License Wins: Razorpay holds a full suite of RBI licenses, including Payment Aggregator (PA), PA-Cross Border, and offline POS approvals, giving it a diversified moat against competitors.
4. Market Sentiment: The “Fintech Divergence”
Razorpay is pushing ahead even as its primary rival, PhonePe, reportedly paused its IPO plans in March 2026 due to market volatility and valuation gaps. Public market investors are currently favoring “Path to Profit” stories, making Razorpay’s operational profitability in its core gateway business a key selling point for the roadshow.
