Razorpay Secures SEBI Approval for Proposed Rs 5,000-6,000 Crore IPO Ahead of 2027 Market Debut
Bengaluru-based fintech unicorn Razorpay has received approval from capital markets regulator Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO) of Rs 5,000 crore to Rs 6,000 crore.
The regulatory clearance follows a confidential draft red herring prospectus (DRHP) submitted by the company in June 2026. According to market sources, the payment gateway major is targeting a valuation of approximately $5 billion (around Rs 49,000 crore to Rs 50,000 crore), with plans to launch the issue between January and March 2027, subject to broader market conditions and investor appetite.
Structure of the Issue and Key Intermediaries
The proposed public issue is expected to comprise a mix of fresh issuance of shares and an offer-for-sale (OFS) by existing investors. Ahead of the regulatory filings, Razorpay secured shareholder approval to raise up to Rs 2,700 crore via fresh equity shares bearing a face value of Rs 2 each. The company may also consider a pre-IPO placement, which would adjust the final public issue size accordingly.
To steer the public listing process, Razorpay has enlisted leading domestic and international investment banks, including:
- Axis Capital
- Kotak Mahindra Capital
- J.P. Morgan
- Citi
Reverse Flip and Domestic Consolidation
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay transitioned from a pure-play payments gateway into a broad digital financial architecture serving millions of enterprises across India. In preparation for an Indian listing, the company initiated the complex corporate process of "reverse flipping," shifting its parent company's domicile from the United States back to India.
The relocation, completed in May 2025, involved merging its US holding entity with Indian subsidiary Razorpay Software India Pvt Ltd. The redomiciling triggered a one-time tax liability of approximately $150 million (roughly Rs 1,275 crore), fully funded from internal accruals, followed by a conversion into a public limited company.
In addition to core domestic payments, Razorpay has continued broadening its regulatory footprint. It secured a cross-border payment aggregator licence from the Reserve Bank of India and recently obtained a Payment Service Provider (PSP) licence from the International Financial Services Centres Authority (IFSCA) to facilitate international collections and global transactions out of GIFT City in Gujarat.
Financial Snapshot and Valuation Realism
Financial performance disclosures indicate rapid top-line expansion for the fintech giant:
- Operating Revenue: Consolidated revenue from operations climbed 65% year-on-year to Rs 3,783 crore in FY25, up from Rs 2,296 crore in FY24.
- Gross Profit: Gross profit rose 41% to Rs 1,277 crore in FY25 compared to Rs 906 crore in the previous fiscal year.
- Net Loss: The company recorded a consolidated net loss of Rs 1,209 crore in FY25, driven largely by exceptional one-time expenses tied to employee stock ownership plans (ESOPs) and tax provisions resulting from the reverse-flip process.
The expected target valuation of $5 billion represents a reset from its peak private market valuation of $7.5 billion achieved in late 2021, when it raised $375 million. Market analysts view this recalibration as a pragmatic move designed to align expectations with public market realities and leave potential value on the table for institutional and retail investors.
Razorpay counts marquee global and regional venture capital funds on its cap table, including Peak XV Partners, GIC, Tiger Global, Ribbit Capital, Lone Pine Capital, Alkeon Capital, and TCV. Once final documentation is filed, Razorpay will join the ranks of homegrown new-age technology firms testing domestic market liquidity on the BSE and NSE.
