Indian fintech company Razorpay has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), which is expected to raise between ₹5,000 crore and ₹6,000 crore, according to people familiar with the development cited by The Economic Times on November 3, 2026. The Bengaluru-based payments company is targeting a stock market debut as early as December, although its listing could move into the first quarter of calendar year 2027 depending on market conditions. The regulatory clearance marks a significant step in Razorpay’s efforts to become a publicly listed Indian fintech company.
The proposed offering is expected to include a fresh issue of shares and an offer for sale (OFS) by existing shareholders. Razorpay had earlier received shareholder approval to raise ₹2,700 crore through a fresh issue as part of the IPO, with the remaining fundraising expected to include secondary share sales. The company has not yet announced its final issue size, price band or listing date. Its public-market plans follow the completion of its reverse flip from the United States to India in 2025, a restructuring that brought its parent company back under Indian jurisdiction.
Razorpay IPO: Key Details
The proposed IPO could become one of India’s major fintech listings, bringing a prominent digital payments company to the domestic stock market.
| IPO detail | Reported information |
|---|---|
| Company | Razorpay |
| Headquarters | Bengaluru, India |
| Expected issue size | ₹5,000–6,000 crore |
| Fresh issue | ₹2,700 crore approved by shareholders |
| Offer for sale | Expected as part of the offering |
| SEBI approval | Reported on November 3, 2026 |
| Potential listing | December 2026 or Q1 2027 |
| Earlier reported valuation range | Approximately ₹49,000–50,000 crore |
| Founders | Harshil Mathur and Shashank Kumar |
| Listing venue | Indian stock exchanges |
The final issue structure and valuation will depend on the updated offer documents and market conditions. The December timeline is a company target reported by sources, not a confirmed listing date.
Why Razorpay Is Going Public
Razorpay has spent several years preparing for an Indian stock market listing.
One of the most important steps was its reverse flip, completed in May 2025. The company moved its parent entity from the United States to India by merging its US-registered parent with its Indian subsidiary.
This restructuring was intended to simplify the corporate structure and prepare the business for a domestic public offering.
Razorpay also converted into a public limited company ahead of its IPO preparations. In June 2026, it confidentially submitted its draft red herring prospectus (DRHP) to SEBI and the stock exchanges.
The confidential filing route allows companies to submit preliminary IPO documents for regulatory review without immediately publishing all sensitive business and financial information.
The company had also secured shareholder approval for a ₹2,700 crore fresh issue. Existing investors are expected to participate through the OFS component, allowing some early backers to sell part of their holdings.
The IPO will give public-market investors an opportunity to participate in Razorpay’s business while providing liquidity to existing shareholders.
Razorpay’s Revenue Grew 65% in FY25, but Company Reported a Loss
Razorpay recorded strong revenue growth in FY25, supported by its payment gateway business, business banking platform and international operations.
According to its reported financial results, consolidated operating revenue increased 65% year-on-year to ₹3,783 crore, compared with ₹2,296 crore in FY24.
Gross profit also increased 41% to ₹1,277 crore. However, the company reported a consolidated net loss of ₹1,209 crore.
| Financial metric | FY24 | FY25 | Growth |
|---|---|---|---|
| Operating revenue | ₹2,296 crore | ₹3,783 crore | 65% |
| Gross profit | ₹906 crore | ₹1,277 crore | 41% |
| Net profit/loss | — | -₹1,209 crore | Loss reported |
The FY25 loss was attributed largely to employee stock ownership plan (ESOP) expenses, restructuring costs and tax liabilities associated with the company’s reverse flip to India.
These expenses are important for investors to examine because they can affect reported profitability even when the underlying business is expanding.
However, the company will still need to demonstrate that its revenue growth can translate into sustainable operating profits and stronger cash generation.
Payments Business Processes Around $180 Billion Annually
Razorpay began operations in 2014 and was founded by Harshil Mathur and Shashank Kumar. It initially focused on helping businesses accept digital payments before expanding into a broader financial technology platform.
Its services now include:
- Payment gateway: Online payment acceptance through UPI, cards, net banking and other payment methods.
- RazorpayX: Business banking and financial management services.
- Payment payouts: Tools for businesses to distribute money to vendors, employees and partners.
- Payroll: Salary processing and employee payment management.
- Cross-border payments: Solutions for businesses handling international transactions.
- Merchant services: Financial and technology products designed for small businesses, startups and larger companies.
Razorpay has previously disclosed that it processes approximately $180 billion in annual total payment value.
The company serves millions of businesses across India, ranging from startups and small and medium enterprises to large corporations.
Its expansion beyond payment processing is intended to increase revenue opportunities from existing merchants and reduce dependence on a single product category.
Razorpay’s Valuation Could Be Below Its Previous Private-Market Peak
Valuation will be an important part of Razorpay’s IPO.
The company was valued at approximately $7.5 billion during a private funding round in 2021. However, reports ahead of its IPO filing in 2026 indicated that Razorpay could seek a valuation of around $5 billion to $6 billion.
That would represent a lower valuation than its previous private-market peak.
Earlier reports placed the potential IPO valuation at approximately ₹49,000 crore to ₹50,000 crore, although the final valuation has not been confirmed.
The difference reflects the changing expectations of investors in the fintech sector. Public-market investors increasingly examine revenue quality, operating margins, profitability and the sustainability of growth when valuing technology companies.
Razorpay’s FY25 revenue expansion is significant, but its reported net loss could lead investors to scrutinise the company’s path towards profitability.
The final IPO valuation will depend on the offer documents, financial performance, investor demand and broader market conditions.
Competition in India’s Digital Payments Market
Razorpay operates in a competitive fintech market that includes Paytm, PhonePe, Cashfree, PayU and Pine Labs.
The sector has expanded alongside India’s digital payments infrastructure, particularly the growth of UPI and online commerce.
However, competition has also increased pressure on payment companies to improve merchant retention, pricing, transaction economics and profitability.
Razorpay has been expanding into services such as business banking, cross-border payments and financial management products to diversify its revenue sources.
The company has also moderated its earlier aggressive expansion into offline payments, according to previous reports, and is focusing on merchants that require integrated online and offline payment solutions.
Its ability to build higher-margin services around its merchant relationships could become an important factor in its public-market valuation.
What SEBI Approval Means for Razorpay’s IPO
SEBI’s reported approval moves Razorpay closer to launching its public offering, but it does not mean that the IPO is immediately open for subscription.
The company must complete the remaining regulatory and procedural steps, including publication of the required updated offer documents, finalisation of the issue structure and announcement of the price band and subscription schedule.
Investors will be able to examine the public offer documents for detailed information about the company’s financial statements, business risks, ownership structure, use of proceeds and other disclosures.
The final timetable could also change if market volatility or investor demand affects the company’s listing plans.
The Bigger Picture
Razorpay’s proposed listing reflects the growing presence of India’s fintech companies in the public markets. A company that began as a digital payments provider has expanded into business banking, payroll, payouts and international payment services, building a broader financial platform for merchants.
The IPO will also test how public-market investors value a fast-growing fintech business that has yet to report a consolidated annual profit. Its revenue growth, payment volumes and expanding product portfolio provide important indicators of scale, but profitability and cash generation will remain central to the investment assessment.
Looking Ahead
Razorpay is targeting a December 2026 market debut, although the listing could move into the first quarter of 2027 if market conditions remain volatile. The company will need to complete the remaining IPO formalities and publish the necessary offer documents before announcing its final issue details. Investors will closely monitor the price band, valuation and the proportion of shares offered by existing shareholders.
The financial disclosures accompanying the IPO will be particularly important in determining how the market evaluates Razorpay’s growth and profitability. Its ability to expand payment volumes, strengthen higher-margin businesses and manage operating expenses could shape investor demand. The proposed ₹5,000–6,000 crore offering would mark a major milestone for the company and India’s fintech industry.
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