Bengaluru-based fintech unicorn Razorpay, a prominent player in India's digital payments landscape, has confidentially submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The proposed public issue is anticipated to raise between $500 million and $600 million, or approximately Rs 5,500-6,000 crore, though the final size will depend on prevailing market conditions and investor interest.
This confidential filing marks a critical step in Razorpay's long-awaited journey towards a public listing. Under SEBI's confidential pre-filing mechanism, companies can submit initial offer documents without immediately disclosing sensitive business and financial details to the broader public, offering flexibility in the early stages of the listing process.
India Domicile Shift Precedes IPO
A significant development preceding the IPO filing was Razorpay's completion of its 'reverse-flip' process in May 2025. This involved relocating its parent company's domicile from the United States back to India, merging the US-registered entity with its Indian subsidiary, Razorpay Software India Pvt Ltd. This strategic restructuring consolidates the company's operations under Indian jurisdiction, a move initiated in May 2023 with an eye on listing on Indian stock exchanges.
Razorpay's Business and Financials
Founded in 2014 by IIT Roorkee alumni Harshil Mathur and Shashank Kumar, Razorpay has grown to become one of India's largest fintech firms, offering comprehensive payment processing and banking solutions for businesses. The company boasts a strong investor base, including Y Combinator, Peak XV Partners, GIC, and Tiger Global.
For the financial year 2025, Razorpay reported robust financial performance. Its consolidated revenue surged by 65% year-on-year to Rs 3,783 crore, up from Rs 2,296 crore in the previous fiscal year. This growth was primarily fueled by its core payment gateway business, RazorpayX (its neo-banking platform), and expanding international operations. Gross profit also increased to Rs 1,277 crore from Rs 906 crore a year earlier. However, the company also reported a net loss of Rs 1,209 crore in FY25, largely attributed to one-time ESOP-related expenses and tax liabilities associated with its reverse-flip process.
Growing Indian Startup IPO Market
Razorpay's confidential IPO filing comes amidst a resurgence of activity in India's startup IPO market. Several new-age technology companies are actively evaluating or pursuing listing plans over the next 12 to 18 months. In the fintech sector specifically, firms like Groww, Pine Labs, and One Mobikwik Systems have already gone public, while others such as PhonePe and Turtlemint are in the pipeline after receiving regulatory approvals for their respective IPOs. Razorpay's move further underscores the increasing maturity and public market readiness of India's burgeoning startup ecosystem.