Razorpay Moves Toward Public Markets

Bengaluru-based payments unicorn Razorpay has officially filed its confidential Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is targeting an IPO of approximately $600 million, potentially utilizing a mix of fresh capital and an offer-for-sale (OFS).

Strategic Restructuring

Razorpay has undertaken significant corporate maneuvers to prepare for this debut, including:

  • Converting to a public limited company in April 2025.
  • Completing a “reverse flip” to return its domicile to India, incurring roughly $150 million in transition taxes.
  • Acquiring a majority stake in POP UPI and securing a cross-border payment aggregator license.

Financial Performance

Despite recent net losses attributed to heavy ESOP expenses and one-time redomiciling costs, the company shows strong growth trajectory:

  • FY25 consolidated operating revenue hit Rs 3,783 crore, a 65% YoY increase.
  • Gross profit reached Rs 1,277 crore, marking a 41% growth.

Market Context

Founded by Harshil Mathur and Shashank Kumar, Razorpay has raised over $741 million to date from investors like GIC, Peak XV Partners, Z47, and Tiger Global. This IPO represents a major test of investor appetite for Indian fintech leaders as they move from private unicorn status to public market entities.