Razorpay wins SEBI approval for IPO at $5 billion valuation target

CNBC-TV18 reported that Razorpay is looking to raise Rs 5,500-6,500 crore at a valuation of about $5 billion, or Rs 49,000-50,000 crore. Reports carried by Business Standard and The Hindu BusinessLine, citing sources, put the issue at Rs 5,000-6,000 crore. The difference leaves the final size dependent on the offer documents and investor demand.

Confidential filing, then approval

Razorpay filed its draft red herring prospectus with SEBI through the confidential route in June 2026. That route lets a company take regulator feedback before making sensitive financial information public, which is why the approval arrived with no public prospectus attached. Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi are the bankers, according to the reports.

Shareholders have also approved a fresh issue and an offer-for-sale component, reports indicated, though no final split is public.

A $5 billion target, below the 2021 peak

Razorpay was last valued at $7.5 billion in 2021, when it raised $375 million, CNBC-TV18 reported. The $5 billion target is roughly a third lower. Reports also said the company drew interest at a lower valuation of $3 billion at one stage.

Rival PhonePe paused its own IPO in March 2026, citing geopolitical tensions in West Asia and volatile market conditions. It had intended to raise over $1 billion at a valuation of $9-10.5 billion, according to PTI.

Revenue up 65%, with a one-off loss

Consolidated revenue rose 65% year on year to Rs 3,783 crore in FY25, from Rs 2,296 crore in FY24, CNBC-TV18 reported. Gross profit rose to Rs 1,277 crore from Rs 906 crore, driven by the payment gateway business, RazorpayX and international operations.

The company posted a net loss of Rs 1,209 crore for the year. Management attributed much of it to one-time ESOP costs and tax liabilities from its reverse flip, which moved its parent from the US to India in May 2025. The shift involved a tax payment of around $150 million, reports said. Razorpay began the process in May 2023.

Preparing for the listing

Harshil Mathur and Shashank Kumar founded Razorpay in 2014, and it became a unicorn in 2020, Rediff reported. It converted into a public limited company in April 2025 as part of its IPO preparations. Its backers include Peak XV Partners, GIC, Tiger Global, Ribbit Capital, Lone Pine Capital, Alkeon Capital and TCV.

It competes with PayU, Cashfree Payments, Pine Labs, PhonePe and Paytm. PayU has also been exploring an Indian listing, while Pine Labs and Paytm are already public, CNBC-TV18 reported.

What happens next

Razorpay is working towards a listing in the first quarter of calendar 2027, though some reports pointed to a December debut, and sources said volatile market conditions could push it later. The company is expected to file final IPO papers before March 2027. Until then, the issue size, price band and date stay open.