Razorpay reportedly plans $500m IPO
- ByStartupStory | January 13, 2026
Razorpay, India’s leading digital payments unicorn, has kicked off preparations for a blockbuster IPO targeting up to ₹4,500 crore ($505 million) in fresh capital, with a late-2026 listing on the horizon.
The Bengaluru-based fintech has invited top merchant bankers including Kotak Mahindra Capital and Axis Capital to pitch for the IPO mandate, following its reverse flip to India and public limited company conversion last year. This move signals confidence in India’s booming digital payments market amid regulatory tailwinds and sustained revenue growth.
IPO Blueprint Takes Shape
Razorpay’s public debut comes after paying $150 million in taxes for re-domiciling from Singapore, completing corporate restructuring, and bolstering its product suite. The fresh issue size remains under discussion, but sources indicate a primarily primary capital raise to fuel expansion rather than immediate investor exits.
The company is also exploring a pre-IPO secondary round for valuation benchmarking, though it remains well-capitalised post its $375 million 2021 raise at $7.5 billion valuation. Total funding to date exceeds $741 million from heavyweights like GIC, Peak XV Partners, Tiger Global, and Z47 (formerly Matrix Partners India).
Recent milestones include acquiring majority stake in UPI-focused POP for $30 million and securing RBI’s cross-border payment aggregator licence, positioning Razorpay for global merchant expansion.
Payments Powerhouse Eyes Public Markets
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay processes billions in transactions annually across 100+ payment modes for 10 million+ businesses. Its full-stack platform spans online/offline payments, lending (Razorpay Capital), payroll (RazorpayX), and international expansion via RazorpayX Payload.
The IPO timing aligns with India’s digital payments surge – UPI volumes hit 15 billion+ monthly – and peers like PhonePe and Paytm navigating public scrutiny. Razorpay’s edge lies in developer-friendly APIs, subscription billing, and neo-banking for SMEs, driving 50%+ YoY revenue growth despite funding winter.
Strategic Timing, Regulatory Green Lights
Post-RBI’s stablecoin and cross-border nods, Razorpay eyes Southeast Asia and Middle East via its recent licences. The IPO could value the firm at $8-10 billion+, reflecting profitability improvements and 40%+ EBITDA margins reported in recent quarters.
Banker pitches focus on optimal mix of fresh issue vs Offer For Sale (OFS), with Sebi’s fast-track route likely given Razorpay’s compliance track record. Listing by Q4 2026 would precede expected debuts from Pine Labs and Navi, cementing fintech’s public market momentum.
What This Means for India’s Fintech Scene
Razorpay’s IPO underscores maturing unit economics in high-volume, low-margin payments. Success could unlock acquisitions in lending/insurance, while public float provides currency for M&A and talent wars against global rivals like Stripe.
For investors, it offers exposure to India’s $100 billion+ digital transactions opportunity. The street awaits draft red herring prospectus (DRHP) filing by mid-2026, but early banker mandates signal full steam ahead for one of India’s biggest fintech listings ever.
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