The Bengaluru-based firm revealed in a public notice that it filed a pre-filed Draft Red Herring Prospectus (DRHP) dated June 12 through SEBI’s confidential filing mechanism.
This approach allows companies to initiate the IPO process without promptly revealing extensive financial and operational details to the public, providing greater flexibility during the regulatory review period.
This filing follows Razorpay receiving shareholder approval to raise up to ₹2,700 crore through a new issue of shares as part of its anticipated public offering.
The IPO is also expected to feature an offer-for-sale component from existing shareholders.
Market estimates suggest that Razorpay might aim to raise between $500 million and $600 million (approximately ₹4,700 crore to ₹5,700 crore) through the offering, which is likely to consist of a balanced mix of new shares and secondary share sales.
Sources indicate that the company is eyeing a stock market debut in 2026, contingent on regulatory approvals and market conditions. At the time of its listing, Razorpay could achieve a valuation between $5 billion and $6 billion.
The IPO is being guided by a consortium of investment banks, including Axis Capital, Kotak Mahindra Capital, JPMorgan, and Citi.
Razorpay’s consolidated revenue surged 65% year-on-year to ₹3,783 crore in FY25, fueled by growth in its payments business, the banking platform RazorpayX, and international operations.
Gross profit rose to ₹1,277 crore from ₹906 crore the previous year. Despite the strong revenue increase, the company reported a net loss of ₹1,209 crore during FY25, primarily due to one-time ESOP-related charges and tax expenses related to its corporate restructuring and return to India.
In addition to its payments business, Razorpay has been positioning itself to take advantage of emerging AI-driven commerce opportunities.
In an interview with CNBC-TV18 last year, co-founder and CEO Harshil Mathur stated that artificial intelligence could fundamentally transform how consumers discover, purchase, and pay for products, similar to the changes brought by UPI in India’s digital payments landscape.
Mathur suggested that while AI-driven payments may not substantially contribute to revenues in the short term, the technology could evolve into a mainstream commerce channel over the next five years.
