Fintech unicorn Razorpay got approval from SEBI for its proposed IPO to raise Rs 6,000 crore. The company plans to list as early as the first quarter of 2027 at a $5 billion valuation. Many bankers are helping with the issue, though market conditions could still change the final size.
Fintech unicorn Razorpay has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), according to multiple media reports from Moneycontrol and Economic Times, citing sources familiar with the development. The issue could raise up to Rs 6,000 crore ($633 million).
The Y Combinator and Peak XV-backed company is looking to list as early as the first quarter of calendar year 2027 at a valuation of about $5 billion, though volatile market conditions could delay the process or affect the issue size. The proposed listing follows Razorpay's return to India and strong revenue growth in FY25, when one-time expenses linked to the relocation contributed to a net loss.
The Economic Times reported, citing unidentified people, that Razorpay had secured SEBI's approval and planned to list in the first quarter of next year. Razorpay and Sebi did not respond to queries, while the company could not immediately be reached for comment on the latest development.
The Bengaluru-based company had confidentially filed draft papers with the capital market's watchdog in June this year. Under the regulator's confidential pre-filing route, companies can submit draft offer documents without publicly disclosing sensitive business and financial information.
Razorpay had confidentially filed for a $500 million IPO, while the proposed public issue is expected to raise more than $500 million to $600 million. The final size could change depending on market conditions and investor demand.
The company has appointed Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi as bankers for the proposed issue. Its initial plan was to raise $700 million at a valuation of about $7 billion, but recent investor sentiment has prompted several IPO-bound companies to take a more conservative view of the public market.
Founded in 2014 by IIT Roorkee alumni Harshil Mathur and Shashank Kumar, Razorpay offers payment processing and banking solutions to businesses. Its investors include GIC, Peak XV Partners and Tiger Global.
Razorpay competes with Prosus-backed PayU, Cashfree Payments, Pine Labs, PhonePe and Paytm, among others. PayU has also planned a listing in the Indian market, while Pine Labs and Paytm are already listed. PhonePe is also likely to list by the end of the current financial year.
Razorpay has been preparing for a public listing for the past few years. In February 2024, co-founder and chief executive Harshil Mathur said the company planned to pursue an IPO after completing its reverse-flip process and shifting its domicile to India.
The company completed the reverse flip in May 2025, moving its parent company's domicile from the United States to India. The process involved merging its US-registered parent entity with its Indian subsidiary, Razorpay Software India Pvt Ltd, consolidating its operations under Indian jurisdiction. Razorpay began the process in May 2023 ahead of its proposed listing on Indian stock exchanges.
Razorpay's consolidated revenue rose 65 per cent year-on-year to Rs 3,783 crore in FY25 from Rs 2,296 crore in the previous financial year, driven by its payment gateway business, RazorpayX and international operations. Gross profit increased to Rs 1,277 crore from Rs 906 crore.
The company reported a net loss of Rs 1,209 crore in FY25, primarily because of one-time employee stock ownership plan-related expenses and tax liabilities arising from the reverse flip. With Sebi's approval secured, Razorpay is preparing for a potential listing in early 2027, subject to market conditions and investor demand.