Digital payments startup Razorpay has begun preparations for an initial public offering (IPO) aimed at raising up to Rs 4,500 crore in fresh capital, according to people familiar with the matter.
The company has invited merchant bankers to pitch for the IPO mandate, with Kotak Mahindra Capital and Axis Capital emerging as frontrunners for the underwriting role, one of the sources said. The public issue is expected to be launched towards the end of the year, although the final timeline and issue size remain subject to market conditions.
Based in Bengaluru, Razorpay counts GIC of Singapore, Peak XV Partners, Z47 (formerly Matrix Partners India), and Tiger Global among its key investors. The fintech unicorn was last valued at $7.5 billion after raising $375 million in 2021 during the peak of the startup funding cycle.
According to another person aware of the developments, Razorpay is also exploring a pre-IPO round, largely structured as a secondary transaction, to establish a valuation benchmark. “The company is well capitalised and is not actively seeking primary capital from private markets at this stage,” the person said.
Founders Harshil Mathur and Shashank Kumar continue to hold a significant stake in the company, while Peak XV Partners, which first invested in Razorpay in 2019, remains its largest institutional shareholder.
Razorpay was a major beneficiary of the pandemic-led surge in digital payments, with rapid growth across its merchant base. The company is expected to follow recent listings by Groww and Pine Labs, which went public last year.
In May last year, Razorpay completed its reverse flip, shifting its headquarters back to India from the US, a move that involved a tax outgo of approximately $150 million. The fintech firm is among a growing number of Indian startups relocating from overseas jurisdictions ahead of potential public listings. In April, the company also secured board approval to convert into a public limited company, further advancing its IPO plans.
Razorpay has raised $742 million in funding to date, according to Tracxn. In FY25, the company reported a 65% jump in consolidated revenue to Rs 3,783 crore, driven by strong performance across its payment gateway, point-of-sale (POS) solutions, loyalty programmes, business banking platform RazorpayX, and international operations.
Gross profit rose 41% to Rs 1,277 crore, although the company reported a net loss, largely due to employee stock ownership expenses of Rs 1,209 crore linked to restructuring and tax costs arising from its redomiciling to India.
Razorpay joins a growing list of new-age startups planning public listings over the next 12–18 months, including PhonePe, Zepto, Oyo, and Infra.Market. According to an ET report dated January 6, startups are collectively looking to raise over Rs 50,000 crore from the public markets in 2026 through a mix of fresh issuances and secondary sales.
