Published: [November 4, 2026]
StartupFeed Quick Take
- Sebi has cleared the Razorpay IPO of Rs 5,000-6,000 crore, 144 days after the confidential filing of June 12, 2026.
- The listing target is about $5 Bn, a third below the $7.5 Bn mark set in 2021.
- Shareholders have approved only Rs 2,700 crore of new shares, so existing holders will sell the rest.
Sebi has cleared Bengaluru-based Razorpay to raise Rs 5,000-6,000 crore through an initial public offering, the Economic Times reported on November 4.
Razorpay is targeting a value of about $5 Bn on listing. That is a third below the $7.5 Bn mark set in the 2021 funding round.
Some investors have shown interest at a far lower price, around $3 Bn. That is 60% below the 2021 mark.
What the Razorpay IPO Will Look Like
The offer has two parts. Razorpay will issue new shares, and existing shareholders will sell part of their holdings.
Shareholders approved a fresh issue of up to Rs 2,700 crore in May, in a resolution filed with the Registrar of Companies. Each new share carries a face value of Rs 2.
That leaves roughly Rs 2,300 crore to Rs 3,300 crore for the offer for sale, on the reported issue size.
Axis Capital, JPMorgan, Citi and Kotak Mahindra Capital are running the issue. No price band and no issue dates have been set.
A pre-IPO placement with selected investors is also planned before the red herring prospectus is filed. A placement would cut the size of the fresh issue.
A listing is likely between January and March 2027. Final papers are expected before March 2027.
The Numbers Behind the Business
Razorpay’s FY25 results statement, published on October 16, 2025, shows consolidated revenue rose 65% to Rs 3,783 crore, from Rs 2,296 crore in FY24.
Gross profit climbed 41% to Rs 1,277 crore, from Rs 906 crore. The bottom line went the other way.
| Item | FY24 | FY25 | Change |
|---|---|---|---|
| Consolidated revenue | Rs 2,296 Cr | Rs 3,783 Cr | Up 65% |
| Gross profit | Rs 906 Cr | Rs 1,277 Cr | Up 41% |
Razorpay posted a loss of Rs 1,209 crore in FY25, after stock option costs and the tax bill from the move back to India.
The holding company shifted base from the United States to India in May 2025. Annual payment volume runs at about $180 Bn.
Harshil Mathur, co-founder and chief executive of Razorpay, put the case for the core business this way:
“Beyond online payments, which is now EBITDA profitable and generating strong cash flows…”
Harshil Mathur, co-founder and chief executive, Razorpay. From the FY25 results statement, October 16, 2025.
EBITDA means earnings before interest, taxes, depreciation and amortisation.
The Valuation Has Fallen by a Third Since 2021
Razorpay was worth $7.5 Bn after a $375 Mn round in 2021. The IPO target is about $5 Bn. That is a cut of a third in five years.
That target is Rs 49,000-50,000 crore in rupee terms. Set against FY25 revenue of Rs 3,783 crore, the range is about 13 times sales. We counted that multiple ourselves.
At the lower $3 Bn level, or Rs 30,000 crore, the multiple falls to about 8 times.
Backers include Peak XV Partners, Tiger Global, Lightspeed and GIC. Shashank Kumar and Harshil Mathur, both alumni of IIT Roorkee, started Razorpay in 2014.
The business now covers payments, business banking, payroll, lending and cross-border transfers.
Why There Is Still No Public Prospectus
Razorpay pre-filed the draft red herring prospectus with Sebi and the stock exchanges on June 12, 2026, through the confidential route. A newspaper notice followed on June 15.
That route keeps the draft private while Sebi reviews it. The public sees no financial detail at the first stage.
The next step is an updated draft, called UDRHP-I. It must stay in the public domain for at least 21 days for comments. A second updated draft and the red herring prospectus follow.
The clock is longer on this route. The issue must open within 18 months of Sebi’s observations, against 12 months on the normal route.
UDRHP-I is due within 16 months of those observations. On a November 2026 observation date, those outer limits fall in early March 2028 and early May 2028.
Razorpay won a second clearance the same week. The International Financial Services Centres Authority granted a final payment service provider licence for GIFT City on November 2.
What this means for you: If you hold stock options at Razorpay, or run a merchant account there, the full books go public the day UDRHP-I is filed. Watch for the newspaper notice, then read the draft inside its 21-day comment window, before any price band is set.
StartupFeed Insight
The number to watch is not Rs 5,000-6,000 crore. It is the gap between $7.5 Bn and $5 Bn, and the $3 Bn some buyers are willing to pay. At Rs 49,000-50,000 crore the issue asks for about 13 times FY25 sales from a business that lost Rs 1,209 crore that year. Most of that loss was one-off. The real test is whether the newer lines, banking, payroll and cross-border, show profit in the UDRHP-I numbers. Our call: Razorpay lands its price band below the $5 Bn target, and UDRHP-I reaches the public domain before March 31, 2027.
By Saraswati Chaubey, Writer
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
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