Razorpay’s IPO Plans and Financial Growth

Razorpay, a digital payments unicorn, has submitted its Pre-filed Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) and stock exchanges, as announced in a newspaper advertisement. The Bengaluru-based firm anticipates an initial public offering (IPO) of approximately $600 million, as reported by numerous media sources. This public offering is expected to include both a fresh issue and an offer-for-sale (OFS), although specific details about the structure remain undisclosed.

Strategic Partnerships for Public Listing

Reports suggest that Razorpay has enlisted the support of Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi for its intended public listing.

Company Valuation and Transition

In 2021, Razorpay achieved a valuation of $7.5 billion after securing $375 million during a peak funding phase. Since that time, the firm has engaged in various strategic actions in preparation for its entry into the public market. In April 2025, Razorpay transitioned into a public limited company and completed its redomiciling to India later that same year, incurring approximately $150 million in taxes related to this transition.

Recent Acquisitions and Licenses

Recently, Razorpay secured a majority stake in POP UPI through a deal valued at approximately $30 million and obtained a cross-border payment aggregator licence from the Reserve Bank of India.

Funding and Investor Contributions

Established by Harshil Mathur and Shashank Kumar, Razorpay has successfully raised over $741 million from notable investors, including GIC, Peak XV Partners, Z47 (previously Matrix Partners India), and Tiger Global.

Financial Performance

On the financial side, Razorpay reported a remarkable 65% year-on-year growth in its consolidated operating revenue, reaching Rs 3,783 crore in FY25. The company’s gross profit surged by 41%, reaching Rs 1,277 crore. However, it also reported a net loss attributable to ESOP-related expenses amounting to Rs 1,209 crore, alongside one-time costs linked to its redomiciling process.

Razorpay has not responded to a query from Startup Superb.