Razorpay IPO: Digital Payment Giant Invites Merchant Bank Bids; Plans to Raise Upto ₹4,500 Crore

As per The Economic Times, Digital payments company Razorpay has initiated its IPO process, inviting bids from merchant banks for a public issue.  

The Bengaluru-based firm aims to raise upto ₹4,500 crore in fresh capital, with the offering expected towards the end of the year. 

Razorpay Prepares for ₹4,500 Crore IPO 

Razorpay has commenced formal steps towards going public, targeting a fresh issue of ₹4,500 crore. The company has reached out to investment banks for participation in the IPO mandate.  

Kotak Mahindra and Axis Capital are currently viewed as leading options for underwriting the issue. The exact size and timing for the IPO are yet to be finalised and remain subject to changes. 

The company was last valued at $7.5 billion following a funding round worth $375 million in 2021. Prominent investors in Razorpay include GIC, Peak XV Partners, Z47, and Tiger Global. Founders Harshil Mathur and Shashank Kumar hold significant ownership in the company. 

Shift of Headquarters and Corporate Reorganisation 

In May 2025, Razorpay completed a corporate restructuring by shifting its headquarters from the US back to India, paying about $150 million in taxes linked to the transition.  

This move, known as a reverse flip, aligns Razorpay with other Indian startups returning from overseas jurisdictions ahead of domestic listings. 

In April 2025, Razorpay received board approval for conversion into a public limited company, marking another organisational milestone towards the IPO. 

Read More: Indian IPO Market to See Momentum in 2026: Zepto, Oyo and More in List! 

Financial Performance and Funding History 

For FY25, Razorpay recorded consolidated revenue of ₹3,783 crore, reflecting a 65% rise driven by payments, point-of-sale services, and its RazorpayX platform.  

Gross profit increased by 41% to ₹1,277 crore. However, a net loss was reported due to ₹1,209 crore in ESOP-related and restructuring expenses. 

Since inception, Razorpay has secured ₹742 crore in total funding across rounds, according to data from Tracxn.  

The company had also explored a pre-IPO secondary transaction to serve as a valuation reference without raising additional primary capital from private investors. 

Conclusion 

Razorpay has initiated IPO procedures targeting ₹4,500 crore in fresh capital. With a revamped organisational structure and improved revenue figures, the payments firm is taking its next step towards becoming a publicly listed entity in India. 

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