Razorpay intends to launch a $500 million IPO as digital payments continue to rise.

2026-01-13

Razorpay is reportedly making early preparations for a potential initial public offering (IPO) that could raise approximately USD 500 million in new capital, according to sources familiar with the situation.

Preparation and Potential Underwriters

Razorpay has invited merchant bankers to pitch for the IPO mandate. As of now, Kotak Mahindra Capital and Axis Capital are seen as leading contenders for underwriting the offering.

The public issue is being considered for launch later in 2026, though the final timing and size will depend on market conditions, regulatory approvals, and internal considerations.

Alternative Financing

In parallel, Razorpay has explored options for a pre-IPO funding round. This would involve a secondary transaction that allows existing shareholders to partially exit while establishing a valuation benchmark ahead of the public listing. Despite being well-capitalized, Razorpay does not face immediate pressure to raise primary capital from private markets.

Financial Performance and Market Position

Razorpay has been among the major beneficiaries of India’s rapid shift towards digital payments, an acceleration driven by the pandemic and continuing post-pandemic trends. Industry data shows that total value of digital payment transactions in India reached USD 31.7 billion in fiscal year 25, with significant contributions from UPI, cards, and online merchant payments.

In fiscal year 25, Razorpay reported a consolidated revenue of USD 419.577 million, marking a 65% increase compared to the previous fiscal year. Growth was driven by its core payment gateway business, POS solutions, loyalty and engagement products, business banking platform RazorpayX, and expanding international operations.

Razorpay completed its reverse flip in May 2025, relocating its headquarters back to India from the US. This move aligns with a broader trend of Indian startups returning from overseas jurisdictions such as the US and Singapore, anticipating domestic listings. As part of this process, the company incurred an approximate tax outgo of USD 150 million.

In April 2025, Razorpay received board approval to convert into a public limited company, another crucial regulatory step toward its IPO plans. These moves place Razorpay alongside other new-age Indian companies preparing for public market access over the next one to two years, including PhonePe, Zepto, Oyo, and Infra.Market.