Razorpay Kicks Off IPO Prep, Eyes INR 4,500 Cr Fresh Issue

SUMMARY

The fintech unicorn has sought bids from merchant bankers, including Kotak Mahindra and Axis Capital, for the public issue

The fintech major is also reportedly in talks to raise a pre-IPO round, which will primarily comprise a secondary transaction, to achieve a specific valuation benchmark

This comes nearly a year after Razorpay received approval from its board to convert into a public entity, and reverse flipped back to India a month later

Fintech major Razorpay has reportedly kicked off preparations for its potential initial public offering (IPO) by the end of 2026.

Sources told Economic Times that the unicorn has sought bids from merchant bankers, including Kotak Mahindra and Axis Capital, for the public issue. As per the report, the company’s IPO will comprise a fresh issue of shares worth INR 4,500 Cr.

However, the timeline and final size of the public issue are still subject to changes.

The fintech major is also reportedly in talks to raise a pre-IPO round, which will primarily comprise a secondary transaction, to achieve a specific valuation benchmark. “Razorpay is well capitalised and is not looking to immediately raise any primary capital from the private markets,” a source reportedly said.

The Bengaluru-based unicorn was last valued at $7.5 Bn during its last $375 Mn fundraise in 2021.

This comes nearly a year after Razorpay received approval from its board to convert into a public entity, the first step towards a public listing. Thereafter, the startup completed its reverse flip back in May 2024 by re-domiciling its headquarters back in India from the US. The company paid nearly $150 Mn in tax for the Desh Wapsi.

Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay is an omnichannel payments and banking platform. Over the years, the startup has forayed into SME payroll management, banking, lending, payments, insurance, among others.

The Bengaluru-based startup has raised over $739 Mn in funding to date and counts the likes of Tiger Global, Y Combinator, GIC, Matrix Partners India, and Peak XV Partners among its backers.

On the financial front, the company slipped into the red in FY25 due to an ESOP expense of INR 1,209 Cr in the fiscal year. However, operating revenue surged 65% to INR 3,783 Cr in the fiscal under review from INR 2,296 Cr in the previous fiscal year.

With this, Razorpay has become the latest fintech startup to make a beeline for D-Street. Last year, investment tech major Groww and fintech platform Pine Labs also listed on the exchanges.

Going forward, multiple lending tech startups such as Kreditbee, Fibe and Moneyview are looking to hit the markets later this year. This comes amid a broader spurt in new-age tech listings.

In 2025, 18 Indian startups listed on the exchanges and raised more than INR 41,000 Cr via public markets. The pipeline looks strong as 20 new-age tech ventures have filed their draft red herring prospectuses (DRHPs) with the SEBI for potential IPOs.