Razorpay prepares for IPO with 6,000 crore rupee target
Fintech firm Razorpay has received regulatory approval for an initial public offering. The company seeks to raise up to 6,000 crore rupees at a valuation of approximately $5 billion.
Razorpay has secured approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), with a listing window expected between January and March 2027. The company is set to raise between 5,000 and 6,000 crore rupees through a mix of primary and secondary share offerings.
The target valuation of $5 billion represents a decrease from the $7.5 billion valuation achieved in late 2021. This adjustment follows a broader market correction within the fintech sector, where volatility and changing economic conditions have forced several peers, including PhonePe, to recalibrate their public market timelines. Razorpay is working with Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi to manage the listing.
Financial performance has been impacted recently by restructuring costs and a tax liability associated with the company’s relocation to India. However, the firm maintains that its core payments business generates strong cash flow. Razorpay is now banking on the introduction of merchant discount rates (MDR) for bulk UPI transactions to improve margins and provide a narrative of sustained profitability to prospective public investors.
Outside of its home market, Razorpay is focusing on growth in Southeast Asia. Having established operations in Malaysia and Singapore, the firm is exploring expansion opportunities in the Philippines, Thailand, and Vietnam.