Razorpay, the Bengaluru-based fintech company that accepts and manages payments online for businesses, has reportedly filed its confidential DRHP with the Securities and Exchange Board of India on 12 June 2026. As per reports, the estimated issue size for the IPO is $600 million (₹5,000-6,000 crore), and the company may have a potential listing in late 2026.
Razorpay has been one of India's most talked-about startups for years, and the company’s move to bring an IPO is significant because it has come a long way from being a simple payment gateway in 2014 to becoming a complete financial services platform today. In this blog, we'll explore the Razorpay IPO in detail, from its valuation and structure to what it could mean for you as an investor.
Axis Capital, JP Morgan, Citi, Kotak Mahindra Capital
Headquarters
Bengaluru
Founded
2014
What is Razorpay?
Razorpay is one of India's leading digital payment and financial services companies, founded in 2014 by Harshil Mathur and Shashank Kumar. Razorpay provides payment gateway solutions that help businesses accept payments through cards, UPI, net banking, wallets, and other channels. Apart from payment processing, Razorpay software also offers:
Payroll solutions
Banking services
Merchant lending
Subscription management
Payment automation tools
The company is backed by some of the leading investors, such as Y Combinator, Peak XV Partners (formerly Sequoia Capital India), Lightspeed Venture Partners, Tiger Global, and Singapore's sovereign wealth fund GIC.
Razorpay IPO Structure and Valuation
According to reports, Razorpay’s proposed IPO is expected to raise around $600 million (₹5,000-6,000 crore), through a combination of:
A fresh issue in which new shares will be issued and offered to the investors.
An Offer for Sale (OFS) giving existing investors and early shareholders an opportunity to sell their stakes.
The key details about this structure are yet to be announced. Moreover, media reports and regulatory filings suggest that the Razorpay valuation after the IPO may reach around the $5-6 billion range.
What Will the IPO Proceeds Be Used For?
Based on media reports and the company's publicly known strategic direction, the fresh issue proceeds from the IPO are expected to be used for:
Strengthening technology infrastructure and investing in AI-powered payment solutions.
Scaling new businesses such as RazorpayX
Supporting strategic acquisitions and growth partnerships.
General business operations, including working capital requirements.
Exploring international market expansion opportunities.
The OFS component would allow some existing investors to exit their positions.
Razorpay Key Investors
Over the years, the company has received support from some of the leading venture capital and institutional investors. Some of the key investors include:
Peak XV Partners (formerly Sequoia Capital India)
Tiger Global Management
GIC (Singapore’s sovereign wealth fund)
Lone Pine Capital
Alkeon Capital Management
Technology Cross Ventures
Lightspeed Venture Partners
Y Combinator
As per reports, in the past few years, Razorpay has raised a total of approx $741 million across multiple funding rounds and became one of India's most valuable fintech unicorns in 2021.
Razorpay's Financials and Key Details
According to reports, Razorpay’s financial metrics for the FY 2025 are as follows:
Razorpay's consolidated operating revenue stood at approximately Rs 3,783 crore in FY 2025, growing 65% on a year-on-year basis.
The Gross Profit (FY25) rose 41% to approximately Rs 1,277 crore.
The company reported a net loss during the year, largely due to ESOP-related expenses of Rs 1,209 crore and one-time costs tied to its redomiciling exercise.
The ESOP restructuring costs and redomiciling expenses are one-time charges that will not recur. The strong revenue and gross profit as reported indicate that the business is scaling well.
What Investors Should Know Before Investing
Before investing in any company, it is important to understand the core strengths and challenges of the business.
Key Strengths
Strong revenue growth of 65% YoY in FY25, with solid gross profit expansion.
Multiple products and services, including payments, banking, payroll, and lending.
Large and loyal merchant base across industries and business sizes.
Licensed payment aggregator with cross-border payment capabilities.
Actively investing in AI and agentic payments.
Key Challenges
The company is yet to achieve consolidated profitability.
Highly competitive industry with strong players like Paytm and PhonePe, and global giants like Stripe and PayPal in the mix.
Razorpay's business is closely tied to RBI regulations, and any major policy change could directly impact its operations.
International expansion is still at an early stage
Valuation at IPO will need to hold up against listed fintech peers both in India and globally.
Summary
Razorpay has reportedly filed its confidential DRHP with SEBI in June 2026, which marks the beginning of its IPO journey. With an estimated issue size of $600 million and a potential listing by late 2026, this may become one of the closely-watched fintech IPOs in India.
The company has strong fundamentals, a large and growing merchant base, an expanding product ecosystem, and leading global and domestic investors. The DRHP filing is a major highlight and may give the company a great opportunity to position itself well among its listed peers.
Disclaimer: This article is for informational purposes only and does not constitute any investment advice. IPO investments carry market risk. Always consult a professional before making any investment decisions.
Business Standard - $600 mn IPO: All about Razorpay IPO | IPO alert | IPO news | Business News
Moneycontrol - Razorpay confidentially files IPO papers with SEBI, issue size likely to be around $600 million
Groww - Razorpay Submits Confidential DRHP with SEBI; Public Issue Could Raise Around $600 Million
Frequently Asked Questions
Is Razorpay going for IPO?
Yes, Razorpay filed its DRHP with SEBI confidentially in June 2026, officially starting the IPO process. The proposal is currently subject to regulatory approval by the Securities and Exchange Board of India.
Is Razorpay publicly listed?
No, Razorpay is not currently listed on any stock exchange. It is a privately held company. It filed its confidential DRHP with SEBI in June 2026.
What is the expected Razorpay IPO price?
The IPO price band has not been announced yet, as the DRHP is still confidential. The price band will be disclosed once SEBI completes its review and the updated DRHP is made public.
Who is the owner of Razorpay?
The company’s ownership is distributed among the founders, Harshil Mathur (CEO) and Shashank Kumar (MD), employees (via ESOPs), and investor shareholders such as Y Combinator, GIC, Peak XV Partners, Tiger Global, and Z47 (formerly Matrix Partners India).
What is Razorpay's valuation?
Razorpay’s valuation was estimated to be around $7.5 billion in 2021. For its upcoming IPO, the company is reportedly targeting a valuation of $5–6 billion.
Is Razorpay in profit?
Razorpay reported a net loss in FY25, primarily due to one-time ESOP restructuring costs of Rs 1,209 crore and expenses related to its redomiciling from the US to India. The core business shows strong gross profit growth.
Is Razorpay approved by RBI?
Yes, Razorpay is a licensed Payment Aggregator regulated by the Reserve Bank of India.
When did Razorpay come out?
Razorpay was founded in 2014 as a payment gateway and has since grown into a comprehensive fintech platform serving millions of businesses across India.
Author: Komal Bhatt
Komal Bhatt is a finance content writer at InvestKraft, specialising in well-researched articles on financial products, stock markets, and investment opportunities, with a particular focus on unlisted shares.
She holds a Master’s degree in Commerce from the University of Delhi, which gives her a solid academic foundation in finance and business. With over three years of hands-on experience in creating digital finance content, Komal has developed a clear understanding of investor needs through her work on wealth management, NISM certification programs, and market education materials.
Komal is passionate when it comes to breaking down complex financial concepts into simple, accurate and actionable insights. Her goal is to help everyday investors understand markets better and make more informed decisions based on reliable, research-backed information.
amit@unlistedkraft.in
+91-9599071664
+91-9599071664
.webp)
+91-9599071664
amit@unlistedkraft.in