Razorpay Secures SEBI Approval for Estimated 6000 Crore Rupee IPO at 5 Billion Dollar Valuation

Bengaluru-headquartered fintech giant Razorpay has received the green light from the Securities and Exchange Board of India (SEBI) for its upcoming initial public offering (IPO). The company is planning to raise between ₹5,000 crore and ₹6,500 crore (approximately $600 million to $700 million) at an expected valuation of $5 billion to $6 billion (around ₹42,000 crore to ₹50,000 crore).

The regulatory clearance marks a significant milestone in Razorpay’s multi-year preparation to list on domestic bourses. Razorpay had submitted its Draft Red Herring Prospectus (DRHP) confidentially with SEBI in June 2026, making it one of the most prominent homegrown consumer and enterprise tech unicorns to utilise the confidential pre-filing mechanism.

Key Transaction and Issue Structure

The issue is expected to comprise a primary capital raise alongside an Offer for Sale (OFS):

• Fresh Issue: The company previously obtained shareholder approval for a fresh issue of shares aggregating roughly ₹2,700 crore, which will be channelled toward platform expansion, product development, and scaling core enterprise banking solutions.
• Offer for Sale: Early institutional backers, which include marquee venture funds such as Peak XV Partners, Tiger Global, Lightspeed Venture Partners, and GIC, are expected to partially offload equity through the secondary component.
• Book Running Lead Managers: Global and domestic investment banks Kotak Mahindra Capital, Axis Capital, JP Morgan, and Citi have been appointed to manage the listing process.

Valuation Discipline and Market Realism

At a targeted valuation of $5 billion, the IPO reflects a deliberate haircut from the $7.5 billion valuation Razorpay achieved in late 2021 during its Series F funding round. The valuation reset aligns with heightened investor scrutiny on sustainable margins and bottom-line stability in the Indian equity markets.

Founded in 2014 by IIT Roorkee graduates Harshil Mathur and Shashank Kumar, the company started as a payment gateway for internet companies and startups before scaling into business accounts, offline merchant point-of-sale solutions, and enterprise software. Razorpay’s core payments processing arm operates at EBITDA profitability, providing institutional and retail market participants with a more mature business model than previous loss-making tech debuts.

Reverse Domicile and Timeline

The SEBI approval follows structural restructuring by the company over the past two years. Razorpay formally completed its reverse flip from Delaware in the United States back to India in May 2025, relocating its parent entity and incurring an estimated $150 million tax outgo to cement its domicile in India. It had converted into a public limited entity earlier that year.

While merchant bankers and the company are aiming to launch the public offering within the coming months, the final timeline remains contingent on market liquidity, macroeconomic indicators, and the filing of updated, public red herring documentation with the stock exchanges.