Razorpay Plans $600M-$700M IPO Filing at Lower Valuation
Key Highlights
Razorpay is reportedly preparing to confidentially file its DRHP to raise $600-$700 million at a $5-$6 billion valuation, a decrease from its previous $7.5 billion valuation.
Fintech unicorn Razorpay is reportedly preparing to file its draft red herring prospectus (DRHP) confidentially in the coming weeks. According to an ET report, the company intends to raise $600 million to $700 million (approximately ₹4,980- ₹5,810 crore) at a valuation between $5 billion and $6 billion. This valuation is lower than its last private valuation of $7.5 billion.
Razorpay declined to comment on Inc42’s inquiries regarding its plans.
This development follows reports that Razorpay had shortlisted Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi to manage its IPO. Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay provides a full-stack payments and financial services platform. Its offerings include payment acceptance, disbursals, lending, and business banking solutions.
The company claims to serve over 80 lakh businesses, with approximately 80% of its customers being small businesses, digital-first brands, and startups. Razorpay has raised over $800 million to date, with backing from investors such as Tiger Global, Peak XV Partners, and Lightspeed.
This move aligns with a trend among new-age tech companies opting for the confidential route to file their IPO papers with the Securities and Board of India (SEBI). Earlier this month, AvenuesAI’s subsidiary Rediff and dronetech startup Garuda Aerospace filed their DRHP with SEBI confidentially.
While Paytm and MobiKwik are listed fintech players, other companies like PhonePe, Kissht, and Moneyview are also reportedly preparing for public listings.
Amid advancements in AI, Razorpay has been adopting the technology. In March, it hosted its annual flagship event, FTX, featuring AI leaders from OpenAI, Anthropic, Nvidia, Emergent, and ElevenLabs. During the event, Razorpay announced multiple AI-focused partnerships, including launching its agentic AI studio in partnership with Anthropic’s Claude, enabling use cases such as placing food orders and completing payments through integrations with ecommerce players like Swiggy and Zomato. It also announced partnerships with PVR Inox, Dermacore, BigBasket, and LinkedIn.
Razorpay is offering an agentic AI stack with three main solutions: Build Your Own Agent, Agent Studio, and Agentic Commerce.
Financially, Razorpay reported a 65% year-over-year increase in operating revenue, reaching ₹3,783 crore in FY25 from ₹2,296 crore in the previous fiscal year. However, the company incurred an ESOP expense of ₹1,209 crore and one-time costs related to restructuring and tax payments linked to shifting its corporate domicile to India, resulting in a loss for the fiscal year. The company did not disclose the exact loss figure for FY25.