razorpay ipo
Fintech unicorn Razorpay is preparing to file its IPO confidentially in the next few weeks. According to reports, this digital payments company is planning to raise $600 to 700 million. The company’s estimated valuation could be between $5 to $6 billion, which is less than the peak of $7.5 billion four years ago. Companies submit IPO documents to SEBI through the confidential route, so that they do not have to make their financial and business details public immediately. In recent times, startups like Swiggy, Groww, Meesho and Zepto have also used this method.
This step is being taken at a time when Walmart-backed payments company PhonePe had put its IPO plans on hold last month. The reason for this was said to be geopolitical tensions related to the West Asia Conflict. According to reports, public market investors valued the company at around $7 billion, which was much lower than its private valuation. According to sources, concerns regarding growth consistency and profitability may impact Razorpay’s IPO pricing. Nowadays, public market investors have become more selective and they are giving priority to only those companies whose profitability timeline is clear or which are showing strong growth.
IPO has been stuck for a long time
The IPO of the company has been in the pipeline for a long time. In May 2025, Razorpay completed its reverse flip, under which it shifted its domicile from the US to India. This process cost approximately $150 million in taxes. The company has also received board approval to become a public limited, which is necessary for listing. Talking about financials, the company’s consolidated operating revenue increased by 65% in FY25 from Rs 2,296 crore to Rs 3,783 crore. This Bengaluru based fintech company was started in 2014 by Harshil Mathur and Shashank Kumar. The company suffered a net loss of Rs 1,209 crore this year, mainly due to ESOP cost and expenses related to domicile shift. This company competes with companies like PayU, Paytm and Cashfree.
Slowdown in payment growth
Razorpay has received permission from RBI to work as a payment aggregator. This company provides online, offline and cross-border payments facilities. Its main focus is on small and medium businesses. Last year, the company also entered the consumer payments segment by purchasing majority stake in Pop. However, the slowdown in the D2C segment has also affected Razorpay. This company is a major payment service provider for new e-commerce companies. According to the company, Razorpay is currently processing payments worth about $180 billion. In 2023 this figure was 150 billion dollars, whereas before that it was 100 billion dollars.
An investment banker said that the growth speed of the digital payment industry has slowed down a bit, which has also affected Razorpay. He also said that the company’s valuation and future profitability estimates will now be analyzed in more detail. The company said that its top-line growth was mainly due to payment gateway, POS services, loyalty program, business banking platform RazorpayX and international operations.
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