One of India’s most closely watched fintech listings has taken a concrete step forward. Razorpay, a full-stack financial solutions company, has filed confidential draft papers with market regulator Securities and Exchange Board of India for an initial public offering. The payment solutions provider pre-filed its DRHP on June 12, 2026. Razorpay has confidentially filed its IPO papers with SEBI, looking to raise $500-600 million. Backed by Peak XV, Tiger Global and Y Combinator, the Bengaluru fintech posted Rs 3,783 crore in FY25 revenue.
In a public notice on Monday, the company, without disclosing the size of the proposed issue, said it has filed “the pre-filed draft red herring prospectus with Sebi and the stock exchanges in relation to the proposed initial public offering of its equity shares on the main-board of the stock exchanges.” By selecting the confidential filing option, Razorpay can keep some of the important details of its IPO, such as the issue structure and the financials, secret until it is ready for public launch.
“Razorpay is sprinting towards the Dalal Street, with shareholders having approved the company’s proposal to raise over Rs 2,700 crore through an IPO. Concerns around sustainable growth and path to profitability remain as Razorpay posted a net loss of Rs 1,209 crore in FY25.”~MediaNama
Issue Size Recalibrated: From $700 Million To $500-600 Million
The proposed initial share sale is expected to raise around $500-600 million, according to sources familiar with the development. However, the final offering could depend on investor demand and market conditions. The initial public offering could be a mix of a fresh issuance of shares as well as an offer for sale component.
Razorpay was reportedly aiming to raise more than $700 million, according to earlier sources. This suggests that there may have been a recalibration or that the exact amount is still being determined. This type of lower revision in issue size prior to a formal filing is not uncommon; it frequently reflects input from early discussions about reasonable value expectations in the present market situation with bankers and anchor investors.
Axis Capital, JPMorgan, Kotak Mahindra Capital and Citi are the issue’s book-running lead managers. The presence of two global investment banks alongside two leading domestic players signals that Razorpay is positioning this listing for both domestic institutional demand and international investor interest.
“Digital payments major @Razorpay has reportedly started early discussions around a potential public listing, as more new-age firms line up for the markets. Key takeaways: Razorpay may raise up to ₹4,500 crore, with IPO talks at a preliminary stage. Bankers including Kotak…”~YourStory
The Financials: 65% Revenue Growth, Narrowing Losses
The numbers underpinning this IPO show a company scaling rapidly while still working toward sustained profitability. Razorpay had reported a 65% increase in its consolidated revenue from operations to ₹3,783 crore in the financial year 2024-25, compared to ₹2,296 crore in FY24. The growth was driven by solid execution across its banking, payment gateway, POS and international businesses. The company’s gross profit advanced 41% YoY to ₹1,277 crore in FY25 compared to ₹906 crore a year back.
After ESOP-related costs, the Bengaluru-based company reported a loss in FY25. Pre-IPO startup financials in India sometimes include ESOP-linked accounting charges, which frequently change an operationally profitable year into a reported loss on paper. Institutional investors usually ignore this distinction when evaluating the underlying business.
“Fintech unicorn Razorpay will likely pay approximately Rs 1,245 crore (around $150 million) in taxes as part of its reverse flip process that involved shifting its domicile from the US to India. The company is not looking to raise fresh capital to cover the liability. The firm is targeting an IPO within the next 18-24 months.” ~Chandra R. Srikanth
Razorpay’s Long Road To Dalal Street:
The confidential filing marks the end of a multi-year process that began with Razorpay’s intention to change its corporate domicile back to India from the United States, a move known as a “reverse flip.” The fundamentals are in place, as seen by the revenue trend, investor roster, and execution of the reverse flip. The main questions now are timing, final issue size, and how Razorpay will price itself in an increasingly discerning market for startup valuations.
One of India’s most recognised fintech brands is inching closer to the stock market. Sources familiar with the development confirmed the filing, though Razorpay itself did not respond to queries before publication. The reverse flip process which involved a substantial tax payment was a necessary precondition for an Indian listing, and its completion clears the most significant structural hurdle that had been standing between Razorpay and the public markets.
Razorpay joins a growing list of companies that have changed their domicile to India for an IPO, including Zepto, Meesho, Groww, and PhonePe, reflecting a broader trend of new-age tech companies choosing to list closer to where the majority of their customers and revenue are based. With the confidential papers now filed, the next milestones to watch will be SEBI’s review feedback, the eventual public DRHP filing with full financial disclosures, and the pricing conversations that will determine where Razorpay’s long-expected listing finally lands on the valuation spectrum.
