Digital payments unicorn Razorpay has reportedly started preparations for an initial public offering (IPO) and is looking to raise up to ₹4,500 crore (around $505 million) in fresh capital, according to an Economic Times report.
Merchant Bankers Pitched, Timeline Still Fluid
The Bengaluru-based fintech has invited merchant bankers to pitch for the IPO mandate, with Kotak Mahindra Capital and Axis Capital emerging as leading contenders. The IPO is expected to be launched towards the end of the year, though the final timeline and issue size are yet to be firmed up.
The report also noted that Razorpay is in discussions to raise a pre-IPO funding round, which is likely to be largely secondary in nature. The company was last valued at $7.5 billion in 2021, when it raised $375 million during the peak of the global funding cycle.
Corporate Restructuring and Recent Moves
Razorpay converted into a public limited company in April last year and also completed its reverse flip to India in 2025, paying around $150 million in taxes linked to the redomiciling process. More recently, the fintech acquired a majority stake in POP UPI for $30 million and secured a cross-border payment aggregator licence from the Reserve Bank of India.
Financial Performance and Investor Backing
Founded by Harshil Mathur and Shashank Kumar, Razorpay has raised over $741 million to date and counts GIC, Peak XV Partners, Z47 (formerly Matrix Partners India), and Tiger Global among its key investors.
In FY25, Razorpay reported a 65% year-on-year jump in consolidated revenue to ₹3,783 crore, with gross profit rising 41% to ₹1,277 crore. The company, however, posted a net loss driven by ESOP-related expenses and one-time costs associated with its India redomiciling.
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