Fintech major Razorpay has formally begun its initial public offering (IPO) journey after confidentially filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and stock exchanges. The company is looking to raise Rs 5,000-6,000 crore through the public issue.
The Bengaluru-headquartered company is backed by a marquee set of investors, including Y Combinator, Peak XV Partners, Lightspeed Venture Partners, Tiger Global and GIC.
Razorpay disclosed the filing through a newspaper advertisement on Monday, stating that the pre-filed DRHP was dated June 12. The development comes shortly after shareholders approved a proposal to raise Rs 2,700 crore through a fresh issue of shares as part of the IPO, in addition to an offer-for-sale component.
Earlier in April, ET had reported that Razorpay was preparing a confidential IPO filing and was targeting a fundraise of $600-700 million.
About Razorpay
Established in 2014 by Harshil Mathur and Shashank Kumar, Razorpay has emerged as one of India's leading full-stack financial solutions providers. The company offers a wide range of services, including payment acceptance, banking, payouts, payroll, lending and other financial products through a unified platform.
Its customer base spans millions of businesses across the country, ranging from startups and small and medium enterprises to large corporations.
After attaining unicorn status in 2020, Razorpay expanded beyond its core payments business to build a broader financial ecosystem for enterprises. Its platform enables merchants to manage collections, payouts, payroll, cash flows and access to capital through a single interface, placing the company at the heart of India's expanding digital economy.
Razorpay financials
Razorpay reported strong growth in FY25, with revenue rising 65% year-on-year to Rs 3,783 crore. Gross profit increased 41% to Rs 1,277 crore during the same period.
Despite the revenue growth, the company posted a net loss of Rs 1,209 crore, primarily due to employee stock ownership expenses, restructuring-related costs and tax liabilities arising from its domicile shift back to India.
As it prepares for the IPO, Razorpay has also refined its business strategy. ET reported last month that the company had moderated its aggressive push into offline payments and was concentrating on merchants that require both online and offline payment capabilities, reflecting its focus on strengthening profitability in its core operations.
The IPO filing follows Razorpay's reverse flip from the United States to India, a process completed last year after securing approvals from the Reserve Bank of India and the Ministry of Corporate Affairs. The shift was a crucial step in the company's plans to pursue a domestic listing. Ahead of the IPO, Razorpay also converted itself into a public limited company.
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