Razorpay Files for $600M IPO, Targets $5-6B Valuation
By Varun Mittal
Fintech unicorn Razorpay confidentially files for a $600-700M IPO, targeting a $5-6B valuation, a revised figure from its previous $7.5B valuation.
Razorpay Files for Confidential IPO
Fintech unicorn Razorpay has confidentially filed its draft red herring prospectus (DRHP) for an Initial Public Offering (IPO).
The company aims to raise between $600 million and $700 million, targeting a valuation of $5 billion to $6 billion.
Key Financials & Valuation
- Razorpay’s target valuation of $5 billion to $6 billion is a reduction from its last private valuation of $7.5 billion.
- The company reported a 65% increase in operating revenue to ₹3,783 crore in FY25.
- Despite revenue growth, Razorpay incurred a loss due to an ESOP expense of ₹1,209 crore and restructuring costs.
Company Background & Strategy
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay provides payments and financial services to over 80 lakh businesses, primarily small businesses and startups.
The company has raised over $800 million from investors including Tiger Global, Y Combinator, and Lightspeed.
Investment bankers appointed for the IPO process include Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi.
Razorpay’s strategic decision to shift its domicile to India was made in preparation for the IPO.
The startup ecosystem in India is closely monitoring Razorpay’s IPO, anticipating its impact on the broader fintech landscape.