India’s fintech firm Razorpay has received approval from the Securities and Exchange Board of India for an initial public offering valued between 5,000 and 6,000 crore rupees, sources said.
Key takeaways
- Regulatory green light: SEBI cleared the proposed IPO, allowing Razorpay to move forward with a listing slated for January to March 2027.
- Target valuation: The offering aims to value the company at roughly $5 billion, down from the $7.5 billion valuation in its 2021 funding round.
- Offering structure: The IPO will include a fresh issue of shares and an offer‑for‑sale, though the exact split has not been disclosed.
- Financial backdrop: Razorpay posted a 65% year‑on‑year rise in operating revenue to 3,783 crore rupees, but recorded a loss in FY25 due to 1,209 crore rupee ESOP expenses and one‑time restructuring and tax costs.
- Strategic shift: Ahead of the listing, the company moved its domicile from the United States to India.
Regulatory approval and timeline
According to sources cited by Inc42, SEBI approved Razorpay’s filing for a public offering that could raise up to 6,000 crore rupees. The board expects to list the shares on Indian exchanges between January and March 2027.
Valuation and market expectations
The IPO is projected to value Razorpay at about $5 billion, a figure lower than the $7.5 billion price tag from its last private round in 2021. Analysts note the lower range reflects market conditions and the company’s recent financial performance.
Offering composition
The prospectus will feature a combination of newly issued shares and an offer‑for‑sale by existing shareholders. Details on the proportion of each component have not been released.
Recent financial performance
Razorpay’s operating revenue grew 65% year over year to 3,783 crore rupees in the most recent fiscal year. The firm posted a loss for FY25, driven by 1,209 crore rupee expenses related to employee stock options and one‑time costs tied to its domicile shift and restructuring.