Indian fintech powerhouse Razorpay has taken a major step toward launching its public offering by appointing four leading investment banks to steer its IPO process, multiple industry sources told Moneycontrol. The proposed listing could raise more than $700 million (Approx 6000 Crore) through a mix of primary and secondary share sales, marking one of the largest IPO moves from India’s fintech space in recent years.
The Bengaluru-based company has selected Axis Capital, Kotak Mahindra Capital, J.P. Morgan and Citi as the core advisers in its IPO syndicate. While the process is still in early stages and razor-sharp details are being refined, people familiar with the matter say the startup aims to build a syndicate of global and domestic banks to maximise investor reach, market interest, and execution strength.
Razorpay declined to comment on the record, and banks in the syndicate also did not immediately respond to queries, according to the report.
The decision to kick off IPO preparations comes at a transformational moment for Razorpay and India’s fintech ecosystem. Over the past decade, Razorpay has emerged as one of the country’s premier digital payments and financial infrastructure platforms — competing alongside major players such as PhonePe, Pine Labs and Paytm-associated businesses.
Founded in 2014 by Harshil Mathur and Shashank Kumar, both alumni of Indian Institute of Technology (IIT) Roorkee, Razorpay has built a comprehensive payment and banking suite that caters to enterprises of all sizes, from startups and SMEs to large corporations. Its offerings span payment gateway, point-of-sale solutions, business banking (RazorpayX), payroll management, lending services, insurance, loyalty tools, and cross-border payments.
This diversification, combined with rapid customer adoption, has helped Razorpay scale significantly. According to data reported earlier, the company’s annual revenue for FY25 surged to ₹3,783 crore — a roughly 65 percent increase year-on-year. Gross profit rose to ₹1,277 crore, though the business reported a net loss due to one-time costs including a large employee stock ownership expense tied to its redomiciling exercise.
Razorpay has raised over $740 million in funding to date from marquee global and domestic investors, including Tiger Global, Peak XV Partners, Y Combinator, Matrix Partners India, GIC, Z47, Lone Pine Capital, Alkeon Capital and others. The company’s valuation stood in the vicinity of $9.2 billion as of mid-2025.
Strategic Moves Behind the IPO Push
A key strategic move that set the stage for this IPO push was Razorpay’s reverse flip merger, completed in 2025, which brought the company’s global headquarters and legal domicile back to India from the United States. This manoeuvre, often called “Desh-Wapsi” (return home), involved merging the US-registered parent entity with Razorpay’s Indian subsidiary — a process that also triggered a reported ₹1,245 crore tax payout.
This shift reflects a broader trend among Indian tech startups, where companies like Groww, Zepto and others have re-domiciled to India to align with regulatory priorities, access local capital markets, and strengthen their Indian corporate governance before listing domestically.
The redomiciling also unlocked regulatory momentum. Razorpay secured a Reserve Bank of India (RBI) licence for cross-border payment aggregation, enabling it to facilitate inward and outward international transactions — a key strategic boost ahead of an IPO. The licence expands its ability to serve exporters, SaaS platforms, freelancers, direct-to-consumer brands and global companies operating in India.
Product Innovation and Business Growth
Razorpay isn’t just a payments gateway. In recent years, the company has aggressively expanded its product stack with tools aimed at strengthening financial operations for businesses. Its RazorpayX platform, for instance, is positioned as an AI-powered financial operations assistant, automating key tasks like cash-flow forecasting, payroll, and reconciliation — and making it a potential differentiator in the IPO narrative.
Geographic expansion is another focal point. Razorpay has announced plans to enter up to four new Southeast Asian markets beyond Malaysia and Singapore by the end of 2026, positioning itself as not just an Indian fintech champion, but a regional contender.
Market Context and IPO Outlook
The Razorpay IPO comes amid a broader resurgence of public offerings from Indian technology and fintech firms. Companies like Groww and Pine Labs have already debuted in public markets, while others such as PhonePe and Turtlemint are preparing to launch their offerings. The fintech wave reflects growing investor appetite and maturity in the Indian startup ecosystem.
Analysts say Razorpay’s estimated $700 million-plus IPO is likely to offer a mix of primary issuance (raising new capital for growth and expansion) and secondary sales (allowing existing shareholders to partially exit). Given the company’s strong revenue growth, expanding product suite, and structural positioning in India, market reception could be a key early signal of investor sentiment toward later-stage Indian fintech offerings.
Razorpay’s move to onboard multiple investment banks, complete its reverse flip, expand its product offerings, and secure key licences signals a robust and methodical approach to its IPO ambitions. If successful, the listing will not only be one of India’s marquee tech debuts of 2026-27 but also a bellwether for the broader fintech ecosystem’s public market readiness.
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