Razorpay files for ₹5,700cr IPO
What's the story
Razorpay, a leading player in the fintech sector, has taken a major step toward its public market debut. The Bengaluru-based company has filed a confidential draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and stock exchanges. The move officially starts the process of an initial public offering (IPO) through SEBI's confidential filing route.
Funding details
Fresh issue of shares likely to raise ₹2,700 crore
Razorpay recently got its shareholders' nod to raise up to ₹2,700 crore via a fresh issue of shares for its upcoming public offering. The company is also likely to have an offer-for-sale component by existing shareholders. Market estimates suggest Razorpay could raise between $500 million and $600 million (around ₹4,700-₹5,700 crore) through the IPO. The issue will likely be a near equal mix of fresh shares and secondary share sales.
Future plans
Razorpay could be valued at $6 billion upon listing
Razorpay is eyeing a stock market debut in 2026, depending on regulatory approvals and market conditions. Upon listing, the company could be valued between $5 billion and $6 billion. The IPO process is being guided by a consortium of investment banks including Axis Capital, Kotak Mahindra Capital, JPMorgan Chase & Co., and Citi.
Revenue growth
Razorpay's revenue grew by 65% in FY25
Razorpay's consolidated revenue grew by 65% year-on-year to ₹3,783 crore in FY25, driven by growth in its payments business, banking platform RazorpayX, and international operations. However, despite the strong revenue growth, the company posted a net loss of ₹1,209 crore during FY25 due to one-time ESOP-related charges and tax expenses related to its corporate restructuring and domicile shift back to India.