Prime Highlights
- Razorpay has filed a confidential draft prospectus with SEBI and stock exchanges, marking a major step toward its planned IPO.
- The fintech company could raise $500 million-$600 million through the offering and may seek a valuation of $5 billion-$6 billion at listing.
Key Facts
- Razorpay is a Bengaluru-based fintech company that offers digital payments, banking solutions through RazorpayX, and international payment services.
- The company reported a 65% year-on-year rise in consolidated revenue to ₹3,783 crore in FY25, while posting a net loss of ₹1,209 crore due to one-time charges and tax-related expenses.
Background
Razorpay has moved a step closer to its planned stock market debut after submitting a confidential draft prospectus to the Securities and Exchange Board of India (SEBI) and stock exchanges under the regulator’s confidential filing framework.
The Bengaluru-based fintech company announced that it had filed a pre-filed Draft Red Herring Prospectus (DRHP), allowing it to begin the IPO process without immediately disclosing detailed financial and operational information. The mechanism gives companies greater flexibility while regulatory reviews are in progress.
The development follows shareholder approval for the company to raise up to ₹2,700 crore through a fresh issue of shares as part of the proposed public offering. The IPO is also expected to include an offer-for-sale component from existing shareholders.
Market estimates suggest Razorpay could raise between $500 million and $600 million, equivalent to around ₹4,700 crore to ₹5,700 crore. The offering is expected to comprise an almost equal mix of newly issued shares and secondary share sales. The company is targeting a stock market listing in 2026, subject to regulatory clearances and market conditions. At the time of listing, its valuation could reach between $5 billion and $6 billion.
A group of investment banks, including Axis Capital, Kotak Mahindra Capital, JPMorgan and Citi, is advising the company on the offering.
Razorpay reported strong business growth in FY25, with consolidated revenue rising 65% year-on-year to ₹3,783 crore. Gross profit increased to ₹1,277 crore from ₹906 crore in the previous year. The company recorded a net loss of ₹1,209 crore, mainly due to one-time employee stock option charges and tax expenses linked to its restructuring and shift of domicile back to India.