Razorpay Takes First Step Towards IPO, Files Confidential DRHP With SEBI

Fintech major Razorpay has taken a key step towards its public listing journey by initiating the IPO process. The company submitted a confidential draft prospectus to the Securities and Exchange Board of India (SEBI) on June 12, 2026.

This filing marks the beginning of regulatory review under the pre-filing mechanism available to companies. The development follows strong operational growth and internal approvals for fundraising.

Why Did Razorpay File a Confidential DRHP With SEBI?

Razorpay used SEBI’s confidential filing route by submitting a pre-filed Draft Red Herring Prospectus (DRHP). This mechanism allows companies to begin regulatory discussions without publicly disclosing detailed financial and operational information.

It provides flexibility to revise or delay IPO plans based on market conditions and feedback. Such filings are increasingly used by technology firms preparing for large public market entries.

How Much Does Razorpay Plan to Raise Through Its IPO?

The company has secured shareholder approval to raise up to ₹2,700 crore via a fresh issue of shares. This capital raise forms a key part of its proposed IPO structure.

The offering is being advised by Axis Capital, Kotak Mahindra Capital, JPMorgan, and Citi. The involvement of multiple investment banks indicates the scale and strategic importance of the transaction.

How Did Razorpay Perform Financially in FY25?

Razorpay reported strong growth in FY25, driven by its core business segments. Consolidated revenue rose 65% year-on-year to ₹3,783 crore.

Gross profit also increased significantly to ₹1,277 crore, compared to ₹906 crore in the previous year. Growth was supported by its payments business, RazorpayX banking platform, and expanding international operations.

Why Did Razorpay Report A Net Loss Despite Revenue Growth?

Despite its strong revenue performance, Razorpay reported a net loss of ₹1,209 crore in FY25. This loss was largely attributed to one-time expenses, particularly employee stock ownership plan (ESOP) charges.

Additional tax costs linked to its corporate restructuring and domicile shift back to India also impacted profitability. These factors reflect transitional financial adjustments rather than ongoing operational issues.

Read More: Razorpay Partners with OpenAI to Enable Instant Payments in AI Apps via Codex.

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Conclusion

Razorpay’s confidential DRHP filing represents a significant milestone in its IPO journey. The use of a pre-filing mechanism allows the company to navigate regulatory reviews while retaining strategic flexibility.

Strong financial growth highlights expansion across multiple business segments. At the same time, reported losses underline the impact of one-time restructuring costs.

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