Digital payments unicorn Razorpay has now officially filed the Pre-filed Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and domestic stock exchanges for an initial public offering (IPO). The milestone announcement was made through a newspaper advertisement by the firm. The financial technology major based in Bengaluru has multiple media reports indicating a public issue worth around $600 million. They have reportedly lined up prominent investment banking entities such as Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi to manage the proposed public listing.
Corporate restructuring and strategic roadmap
The public sale is likely to include a new share issue and an offer-for-sale (OFS) from existing shareholders. The exact size and makeup of the offering have not yet been released. Technology firms such as Razorpay are among those opting for the confidential pre-filing process that lets the market regulator see nodding with the business, financial and operational details of an initial offer paper before they are actually published.
The confidential submission is a result of a series of careful corporate and strategic changes made by the company over the last couple of years to equip it as a publicly listed company. The fintech company raised $375 million, valued at $7.5 billion, during the height of the global tech funding cycle in 2021. During this high funding window, the company’s leaders have been working on a restructuring of the corporate structure to comply directly with the listing rules applied by the local stock exchanges, which force foreign firms to be registered, or based, in India if they wish to gain a primary listing.
Under this strategic plan, Razorpay has now transformed its corporate structure into a public limited company in April 2025. After making this change, the company managed to successfully carry out its much-awaited corporate reverse flip later in the year, changing its company’s key parent’s domicile from the United States to an India-based company.
The entire re-domestication is a considerable transaction, and the company paid about $150 million in transition-related taxes. The startup has expanded its in-country operations with the purchase of a majority stake in payment aggregator POP UPI, for a sum valued at approximately $30 million, and obtained a cross-border payment aggregator licence from the Reserve Bank of India to broaden its service offering.
Institutional backing and operational front
Razorpay has received a total of over $741 million across several funding rounds from a strong investor lineup comprising marquee global venture capitalists and institutional investors. The company has achieved a prominent rank in its capitalization table through substantial holdings by leading investment groups like GIC, Peak XV Partners, Tiger Global, and Z47, formerly known as Matrix Partners India. This robust institutional support has enabled the platform to develop an ambitious financial suite for B2B payments and banking.
In the operational and financial arena, Razorpay achieved strong performance in its fundamental lines of business for the fiscal year ended in March 2025 (FY25). The company also has an impressive consolidated operating revenue growth of 65% to ₹3,783 crore from the previous financial year.
This momentum was further sustained with a 41% increase in gross profit, which stood at ₹1,277 crore. The company posted a consolidated bottom-line loss in the fiscal year, mainly due to non-cash Employee Stock Ownership Plan (ESOP) expenses at ₹1,209 crore, plus the one-off transition costs directly related to its corporate reincorporation exercise back to India.
Conclusion
The move by Razorpay to file its DRHP with SEBI anonymously is an unprecedented step in the history of the Indian digital payments and financial technology sector. The company has taken steps to position itself for the public market and private investors by returning to a home-grown public limited structure, as well as absorbing the associated tax costs. With a 65% growth in annual revenue, aided by some of the world’s largest investment funds, the block of shares will be a key benchmark of investor appetite for larger enterprise-grade digital finance infrastructure.
The final details about pricing, structure and timing will eventually give an accurate picture of the future valuation of India’s top B2B payment gateway following the correction as the regulatory process continues behind the framework of confidence.
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