Razorpay has initiated early preparations for a potential initial public offering (IPO) that could raise USD 500 million in fresh capital, according to people familiar with the developments.
The fintech has invited merchant bankers to pitch for the IPO mandate, with Kotak Mahindra Capital and Axis Capital emerging as leading contenders for the underwriting role.
While discussions are still at a preliminary stage, the public issue is being explored for launch towards the end of 2026. The final timing and size of the IPO remain subject to market conditions, regulatory approvals, and internal considerations.
In parallel, Razorpay has also explored the possibility of a pre-IPO funding round, primarily structured as a secondary transaction. Such a move would allow existing shareholders to partially exit while helping establish a valuation benchmark ahead of a public listing. The company remains well capitalised and does not face immediate pressure to raise primary capital from private markets.
Financial performance and market position
Razorpay has been one of the major beneficiaries of India’s rapid shift toward digital payments, a trend that accelerated sharply during the pandemic and has continued since. According to industry data from the Reserve Bank of India, the total value of digital payment transactions in India crossed USD 31.7 billion in FY25, driven by UPI, cards, and online merchant payments. UPI alone recorded more than 180 billion transactions during the year, underscoring the scale of opportunity for payment infrastructure providers.
In FY25, Razorpay reported consolidated revenue of USD 419.577, representing a 65% year-on-year increase. Growth was supported by its core payment gateway business, POS solutions, loyalty and engagement products, business banking platform RazorpayX, and expanding international operations. However, the company reported a net loss, largely due to employee stock ownership plan (ESOP) expenses, along with restructuring costs and tax liabilities associated with its redomiciling to India.
Razorpay completed its reverse flip in May 2025, shifting its headquarters from the US back to India. The move aligns with a broader trend of Indian startups returning from overseas jurisdictions such as the US and Singapore in anticipation of domestic listings. The company incurred a tax outgo of approximately USD 150 million as part of this process. In April 2025, Razorpay also received board approval to convert into a public limited company, a key regulatory step toward an IPO.
Razorpay’s IPO plans place it among a growing cohort of new-age Indian companies preparing to access public markets over the next 12 to 18 months. This group includes firms such as PhonePe, Zepto, Oyo, and Infra.Market.
