Bengaluru-based digital payments major Razorpay has initiated formal preparations for an IPO, targeting a fundraise of up to INR 4,500 crore. The fintech unicorn has invited pitches from merchant bankers to underwrite and manage its listing, signalling one of the most anticipated market debuts in India’s fintech sector.
Razorpay IPO: Banking Mandate & Timeline
According to a report, Kotak Mahindra Capital and Axis Capital have emerged as frontrunners for the Razorpay IPO mandate. While the public issue is likely to be launched towards the end of 2026, the final size and timing will depend on market conditions and regulatory clearances. Sources indicate that the company may also conduct a pre-IPO secondary transaction to establish a fresh valuation benchmark before entering public markets.
“The company is well-capitalised and not actively seeking primary capital from private investors at this stage,” a person familiar with the matter said, noting that the IPO move is primarily aimed at providing liquidity to existing investors and strengthening governance in line with Indian regulatory norms.
Financial Performance & Reverse Flip
Razorpay’s fiscal year ending March 2025 underscores both the scale and challenges of its rapid expansion. The company reported a 65% jump in consolidated revenue to INR 3,783 crore, up from INR 2,296 crore in FY24. Its gross profit surged 41% to INR 1,277 crore.
However, the fintech slipped into the red for the fiscal year, posting a net loss driven by INR 1,209 crore in ESOP-related expenses. The loss was primarily attributed to restructuring costs and tax obligations linked to its “reverse flip”—the process of shifting its domicile back to India from the United States.
The reverse flip, completed in May 2025, involved merging the company’s US-based parent with its Indian subsidiary, Razorpay Software India. The move brought the firm under Indian jurisdiction and triggered a tax payment of ~INR 1,245 crore (USD 150 million), funded entirely from internal reserves. The redomiciling aligns Razorpay with Indian regulatory frameworks ahead of its domestic listing, mirroring similar moves by Groww and PhonePe.
Regulatory Milestone: RBI Cross-Border Licence
In a significant regulatory boost ahead of its IPO, Razorpay secured the Reserve Bank of India’s cross-border payment aggregator licence in December 2025. The licence allows it to facilitate both inward and outward remittances, empowering exporters, SaaS firms, freelancers, and global enterprises operating in India.
The company’s international payment stack—already integrated with platforms such as Airbnb, Agoda, and Shopify—has been expanding rapidly, with cross-border transactions growing 40% year-on-year.
AI and Product-Led Growth
Razorpay’s CEO Harshil Mathur has highlighted a strong focus on AI-first innovation and product-led expansion. In October 2025, Razorpay collaborated with the National Payments Corporation of India (NPCI) and OpenAI to pilot agentic payments via ChatGPT, facilitating AI-enabled conversational UPI transactions through “UPI Circle” and “UPI Reserve Pay.”
At the Global Fintech Fest 2025, the company unveiled biometric authentication for card payments, eliminating the need for one-time passwords (OTPs). This launch aligns with the Reserve Bank of India’s new two-factor authentication (2FA) regulations under the 2025 Digital Payment Directions.
Expanding International Footprint
As part of its growth strategy, Razorpay plans to enter up to four new Southeast Asian markets by 2026, following launches in Malaysia and Singapore. The targeted regions include the Philippines, Thailand, and Vietnam, pending local regulatory approvals.
Mathur emphasized that international operations—currently Razorpay’s fastest-growing business vertical—are scaling at 70–90% year-on-year, supported by the company’s low capital intensity and India-centric R&D operations.
Investor Base & Funding History
Razorpay has raised USD 742 million (~INR 6,700 crore) to date from global investors, including GIC (Singapore), Peak XV Partners (formerly Sequoia India), Tiger Global, Z47 (formerly Matrix Partners India), Lightspeed, Ribbit Capital, Alkeon Capital, TCV, and Y Combinator. Founders Harshil Mathur and Shashank Kumar retain significant equity, with Peak XV being the largest institutional shareholder.
Sectoral Context & Peer Comparisons
Razorpay IPO would follow recent and upcoming listings by fintech peers such as Groww, Pine Labs, and PhonePe, marking a new phase for India’s digital finance ecosystem. Collectively, new-age Indian startups are expected to raise over INR 50,000 crore from public markets in 2026 through a mix of primary and secondary offerings.
The company’s trajectory from a payments gateway to a full-stack fintech platform—encompassing business banking (RazorpayX), POS systems, loyalty programs, and cross-border payments—illustrates the sector’s evolution toward integrated financial infrastructure.
Final Words
Razorpay IPO decision represents a strategic shift in India’s startup narrative—where growth-stage unicorns are aligning closer with Indian capital markets and regulators. The firm’s robust revenue growth, diversified fintech stack, and international expansion provide a compelling investment thesis.
However, profitability post Razorpay IPO will hinge on managing ESOP expenses, regulatory compliance, and global expansion costs. Still, Razorpay’s strong fundamentals and regulatory readiness position it as one of the most closely watched IPOs of 2026.
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