Razorpay Eyes $5-6 Billion Valuation in Upcoming IPO

In a major step towards its much-awaited stock market debut, fintech unicorn Razorpay has received shareholder approval to raise ₹2,700 crore through the fresh issue component of its initial public offering (IPO). According to filings sourced from the Registrar of Companies, the Bengaluru-based digital payments company will issue and allot fresh equity shares of face value ₹2 each, aggregating to ₹2,700 crore. The development has put Razorpay firmly back on the IPO radar of Indian investors.

Bigger IPO with OFS Component on the Cards

While the fresh issue is pegged at ₹2,700 crore, the total size of the IPO is expected to be much larger. As per Economic Times reports, Razorpay is looking to raise between $600 million and $700 million, which works out to roughly ₹5,000-5,800 crore. The balance amount over and above the fresh issue will come through an Offer for Sale (OFS), giving partial exit to early investors like Peak XV Partners, Tiger Global, Y Combinator and GIC. The company also plans to raise funds through a pre-IPO placement before filing its red herring prospectus with SEBI.

Reverse Flip Done, Public Listing Next

Razorpay completed its desh wapsi in May 2025, shifting its corporate domicile from the United States back to India. The reverse flip cost the company around $150 million in tax outgo. The board also approved its conversion into a public limited company, a key regulatory step before any IPO.

On the financial front, FY25 was a year of strong top-line growth but a reported loss because of one-off costs. Razorpay's revenue from operations jumped 65% to ₹3,783 crore in FY25 from ₹2,296 crore in FY24, the strongest annual performance on record. Gross profit rose 41% to ₹1,277 crore, and the core online payments business turned EBITDA-positive during the year. However, the company posted a consolidated net loss of ₹1,209 crore, dragged down by ESOP expenses and tax outgo related to the reverse flip. The company currently processes around $180 billion in total payment value annually. 

Valuation Reset from $7.5 Billion to $5-6 Billion

One important point IPO investors should note is the valuation reset. Razorpay had touched a peak valuation of $7.5 billion in 2021. However, this time it is targeting a valuation in the $5 billion to $6 billion range, which reflects the more cautious mood in public markets towards new-age tech companies. The decision to take a realistic price tag is being seen as a smart move to avoid a listing-day flop, which has hurt several recent fintech IPOs.

Confidential Filing and AI Push

Razorpay is likely to take the confidential filing route with SEBI, similar to Swiggy, Groww and Zepto. In February 2026, the company appointed Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi as IPO bankers. The fintech is also doubling down on AI, having launched an "Agentic Experience Platform" to automate financial workflows for merchants.

Founded in 2014 by IIT Roorkee duo Harshil Mathur and Shashank Kumar, Razorpay competes with Paytm, PhonePe, Pine Labs and Cashfree. With shareholder approval now secured and the DRHP filing expected in coming weeks, all eyes are on what could be one of the most-watched fintech IPOs of 2026.