Razorpay has received formal approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO), according to a report by Inc42. The fintech company is seeking to raise between ₹5,000 crore and ₹6,000 crore ($530 million to $630 million) through the public issue. This regulatory clearance allows the company to move forward with listing its shares on Indian stock exchanges. The offering is expected to comprise both a fresh issue of shares and an offer-for-sale (OFS) by existing investors, although the specific split between the two components has not been disclosed. The Hindu BusinessLine confirmed that the company secured this approval from the markets regulator, noting that sources familiar with the development provided the details.
The proposed IPO values Razorpay at approximately $5 billion. This target is significantly lower than the $7.5 billion valuation the company commanded during its last funding round in 2021. The company filed its draft IPO papers through the confidential route in June 2026, a process that allows firms to submit sensitive business information to regulators without immediate public disclosure. The Hindu BusinessLine reported that the confidential filing initiated the formal process to tap public markets. Inc42 noted that the Economic Times first reported the initial development of the IPO preparations.
Razorpay plans to list its shares between January and March 2027. The company recently shifted its domicile from the United States to India in preparation for the listing. This structural change impacted its financials for the fiscal year 2025, as the firm reported a net loss. The losses were attributed to ₹1,209 crore in employee stock option plan (ESOP) expenses and one-time costs related to the restructuring and tax implications of the domicile shift. Despite the net loss, operating revenue for the year rose by 65% to ₹3,783 crore.
Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay provides payment processing, business banking, payroll, and lending solutions. The platform serves millions of businesses across India, ranging from startups to large corporations. The company has raised over $800 million to date from investors including Y Combinator, Tiger Global Management, and Ribbit Capital. As it prepares for the public markets, Razorpay has also expanded its artificial intelligence offerings, including a partnership with OpenAI for ChatGPT advertising and the launch of its Vulcan AI model for payment safety.