Fintech unicorn Razorpay is gearing up to solidify its existence in India by shifting its legal domicile from the US to its home market. This move sets the stage for an IPO in 2026 and is a clear indication of Indian startups reclaiming their base.
Why Razorpay is Moving Base
Moving base is not just symbolic; it reflects Razorpay’s changing priorities and approach. Speaking to media, co-founders Harshil Mathur and Shashank Kumar said that though moving base will cost them a cool USD 300 million in taxes, it’s a ‘small price to pay’ for long-term growth and market alignment. The company is going through the regulatory process, including RBI and NCLT clearances, and expects to complete the move in under 6 months. They are also strengthening their internal compliance and governance processes in preparation for listing.
Strategic Alignment with Razorpay IPO
Founded in 2014 and accelerated by Y Combinator, Razorpay has been a key player in India’s fintech journey, riding milestones like demonetization and digital payments boom. Redomiciling is in line with the company’s plan to list in India where they have better brand recognition and market understanding. “India is our home country. This is where we are known, where all our customers are and where we have all our operations,” Kumar said. The founders also said that listing in India will make it easier to communicate with investors and regulators and will build more local investor trust.
With a valuation of USD 7.5 billion and revenue of INR 2,500 crore in FY 2023-24, the company is gearing up for the listing. Razorpay plans to reach USD 1 billion in revenue by 2030 and USD 180 billion TPV by the same year. They are growing at 50% YoY for the next few years and are strengthening relationships with key banks and forging new business partnerships to make a stronger market debut.
Scaling Beyond PaymentsPayments currently account for 80-85% of Razorpay’s business. The company plans to diversify its revenue and aim for a 60:40 ratio between payments and software subscriptions in the next 3-4 years. They have already started an international foray with a presence in Malaysia and will soon be in Singapore. This will open up new revenue streams and strengthen the brand globally.
Challenges and Market Confidence
Going public is full of operational and regulatory challenges. But Mathur draws confidence from the journey of other Indian tech companies that went public like Zomato, Paytm and Policybazaar. And Razorpay’s focus on breaking even in the payments business before IPO shows prudence and predictability that the public markets love. The company is also working on operational efficiency and profitability to meet investor expectations when they list on the stock market.
Conclusion
As Razorpay is getting ready to list in 2026, its decision to move domicile from the US to India shows a maturing fintech ecosystem and growing confidence in Indian capital markets. With big growth plans, a strong domestic presence and a diverse product roadmap, Razorpay is well equipped to not only list successfully but also set new benchmarks for homegrown fintech innovation. The success story will inspire many more startups to bring their roots and fundraising plans back home, which is a big shift in the Indian startup ecosystem.
