Razorpay Gets SEBI Approval for ₹6,000 Crore IPO at $5 Billion Valuation

Fintech company Razorpay has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), as reported by Economic Times.

The Bengaluru-based company is looking to raise approximately ₹5,000 – 6,000 crore through the public issue, which could value it at around $5 billion. Razorpay is reportedly targeting a stock market listing in the January to March 2027 quarter, although the timeline may depend on market conditions and investor demand.

The proposed IPO is expected to include a fresh issue of shares and an offer-for-sale (OFS) component, allowing existing investors to sell part of their holdings. The final split between the two components has not been disclosed.

Razorpay had confidentially filed its draft red herring prospectus (DRHP) with SEBI in June 2026. The confidential filing route allows companies to submit draft offer documents without immediately making detailed business and financial information public.

Razorpay IPO Targets $5 Billion Valuation

Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay provides payment processing and financial technology solutions to businesses. Its offerings include online and offline payment acceptance, payouts, business banking through RazorpayX, payroll, merchant lending and payment gateway services.

The company was last valued at $7.5 billion in 2021, when it raised $375 million in a funding round. The proposed IPO valuation of around $5 billion would be lower than its previous private-market valuation.

Razorpay has also completed the process of shifting its parent company’s domicile from the United States to India, commonly referred to as a reverse flip. The process was completed in May 2025 and was part of its preparations for a domestic stock market listing. The company also converted into a public limited entity ahead of the IPO process.

Reports have identified Axis Capital, Kotak Mahindra Capital, JPMorgan and Citi as bankers working on the proposed offering.

The company has been expanding its product portfolio through artificial intelligence. It recently launched Vulcan, a transformer-based AI foundation model developed specifically for payments. Razorpay said the model was trained on nearly 4 billion payments and 3 trillion data points, with applications across transaction routing, fraud detection, risk assessment and checkout personalisation.

Razorpay has also partnered with OpenAI to help Indian businesses advertise on ChatGPT through its growth marketing platform, Razorpay Engage.

Razorpay Reports 65% Revenue Growth in FY25

Razorpay reported consolidated revenue of ₹3,783 crore in FY25, an increase of 65% from ₹2,296 crore in FY24. Gross profit rose 41% to ₹1,277 crore from ₹906 crore during the same period.

However, the company reported a net loss of ₹1,209 crore in FY25, compared with a profit in the previous fiscal year. The loss was largely attributed to employee stock ownership plan (ESOP)-related expenses, restructuring costs and tax liabilities associated with its shift of domicile to India.

Razorpay’s FY25 revenue included contributions from its payment gateway, point-of-sale services, loyalty programmes, RazorpayX and international operations. The company has also been focusing on expanding services such as cross-border payments and financial products for businesses.

The proposed IPO will give public market investors an opportunity to participate in the company’s growth as it expands beyond payment processing into a broader business financial services platform.

The final issue size, valuation, fresh issue and OFS allocation, and listing schedule will become clearer through subsequent regulatory disclosures and the company’s public offer documents.