Razorpay Preps for ₹4,500 Cr IPO, Seeks Merchant Bankers
Overview
Fintech unicorn Razorpay is gearing up for its Initial Public Offering, targeting a fresh issue of ₹4,500 crore by late 2026. The company has reportedly engaged merchant bankers like Kotak Mahindra and Axis Capital. Razorpay is also exploring a pre-IPO funding round to solidify its valuation. This move follows its re-domiciling to India and precedes potential listings from other lending tech firms, signaling robust activity in India's new-age tech sector.
Stocks Mentioned
Razorpay Aims for Public Listing by 2026
Fintech giant Razorpay is actively preparing for its initial public offering, aiming for a listing by the end of 2026. The company has reportedly begun soliciting bids from merchant bankers, including prominent names like Kotak Mahindra and Axis Capital. The planned public offering is expected to feature a fresh issuance of shares valued at approximately ₹4,500 crore.
IPO Preparations Underway
Sources close to the matter indicated that Razorpay has initiated discussions with investment banks to manage its public debut. While the timeline and the final size of the issuance are still subject to market conditions and strategic decisions, the move signifies a major step towards public markets. The company is also reportedly exploring a pre-IPO funding round, likely a secondary transaction, aimed at achieving a specific valuation benchmark.
Strategic Re-domiciling and Valuation
Razorpay's pursuit of an IPO follows its strategic decision to re-domicile its headquarters back to India from the United States in May 2024, a move that incurred approximately $150 million in taxes. The company, last valued at $7.5 billion during its $375 million funding round in 2021, is seeking to solidify its market position. Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay operates a comprehensive payments and banking platform, expanding into SME payroll, lending, and insurance.
Financial Performance and Market Context
Financially, Razorpay reported a net loss in fiscal year 2025, largely due to a significant ESOP expense of ₹1,209 crore. However, its operating revenue demonstrated robust growth, surging 65% to ₹3,783 crore from ₹2,296 crore in the previous fiscal year. Razorpay joins a growing cohort of Indian fintech startups eyeing public markets, with companies like Groww and Pine Labs having already listed. Several other lending tech firms, including Kreditbee, Fibe, and Moneyview, are also anticipated to launch their IPOs later this year. In 2025 alone, 18 Indian startups successfully listed, raising over ₹41,000 crore, underscoring a strong pipeline of new-age tech ventures preparing for public offerings.
