Razorpay Files Confidential IPO Papers To Raise $600 Mn

SUMMARY

The Peak XV Partners-backed fintech unicorn is expected to raise $500-$600 Mn through the issue

The startup appointed investment bankers including Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi earlier this year for the IPO

Backed by marquee names like Tiger Global, Y Combinator, Lightspeed, among others, the startup has raised a funding of over $800 Mn to date

Fintech major Razorpay has filed its draft red herring prospectus (DRHP) for an IPO through the confidential route, as per a newspaper advertisement.

The Peak XV Partners-backed fintech unicorn is expected to raise $500-$600 Mn through the issue, a MoneyControl report said, citing sources. In April, it was reported that Razorpay was looking to raise $600-$700 Mn through the IPO at a valuation of $5-$6 Bn, lower than its last private valuation of $7.5 Bn.

The startup appointed investment bankers including Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi earlier this year for the IPO.

Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay offers a full-stack payments and financial services platform, offering payment acceptance, disbursals, lending and business banking solutions.

It claims to cater to more than 80 Lakh businesses. Nearly 80% of its customers are small businesses, digital first brands and startups.

Backed by marquee names like Tiger Global, Y Combinator, Lightspeed, among others, the startup has raised a funding of over $800 Mn to date.

In FY25, Razorpay slipped into the red due to an ESOP expense of ₹1,209 Cr and additional one-time restructuring costs incurred from shifting its domicile to India ahead of the IPO. Its operating revenue surged 65% to ₹3,783 Cr in FY25 from ₹2,296 Cr in the previous fiscal year.

Razorpay was expected to turn its India business profitable in FY26, while its international business was projected to become profitable in the ongoing fiscal, CFO Arpit Chug told Inc42 in October.

For this, the startup was making investments in AI-first products, financial infrastructure, and new verticals that enhance value for its partner businesses. Besides, it was also looking to expand into Southeast Asia, including Malaysia and Singapore. It also set up a US team to expand cross-border payments infrastructure between the US and India.

Chug noted at the time that the Razorpay IPO was expected to be reasonably large due to a 10% equity dilution requirement. However, he also said that the startup might undertake some secondary transactions ahead of the IPO to make the OFS component smaller.

The development comes at a time when a number of new-age tech companies are preparing for their public market debuts. Last week, quick commerce giant Zepto filed its updated DRHP to raise ₹8,010 Cr through a fresh issue of shares, with existing investors expected to offload an additional 11.35 Cr shares via the IPO.

Fintech major PhonePe, however, deferred its IPO earlier this year due to volatility in global equity markets after filing its UDRHP in January for its OFS-only IPO.