Razorpay IPO 2026 — ₹5,700 Cr DRHP, Date, Price Band & Review

Razorpay, one of India's largest payments companies, is moving towards a public listing. The company has appointed bankers and won shareholder approval for a fresh issue, and is preparing to file its draft papers with SEBI through the confidential route. The IPO is sized at around ₹5,700 crore (about $700 million) at a target valuation of $5-6 billion, with a working target of listing by the end of 2026.

Note one thing up front: the DRHP has not been filed yet. There is no subscription date, price band, or grey market premium at this stage. What follows is a review of where the company stands, the financials behind the listing, and what retail investors should weigh as it moves forward.

Razorpay IPO — Key Details at a Glance

Note: Issue size and structure are based on the shareholder-approved fresh issue and reported OFS plans. The per-share price band will be set at the RHP stage and is not yet public. Figures will be confirmed once the DRHP is filed.

Where the IPO stands today

Razorpay is in the run-up to a filing, not in the market. The pieces are falling into place one by one:

• Bankers appointed (February 2026): Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi were brought on to run the issue.
• Shareholder approval for the fresh issue (May 2026): investors signed off on a ₹2,700 crore fresh issue of shares.
• Confidential DRHP: the company plans to file through SEBI's confidential pre-filing route, the same path taken by Swiggy, Groww, Zepto and Meesho. This keeps the draft prospectus private during SEBI's review and only opens it to the public at the updated-DRHP stage.

The total issue, at roughly ₹5,700 crore, splits into the ₹2,700 crore fresh issue plus an offer for sale of around ₹3,000 crore. The OFS gives early backers including Peak XV, Tiger Global, Y Combinator and GIC a partial exit. On the company's working timeline, a listing by the end of 2026 is the target, though that depends on the filing landing in the coming weeks and on market conditions holding up.

The corporate restructuring behind the filing

Before it could list in India, Razorpay had to untangle a US-parented structure. Three steps got it ready:

• Converted to a public limited company (April 2025). A standard pre-IPO step.
• Reverse flip from the US to India (May 2025). The company shifted its domicile back to India, a move that carried a $150 million tax cost. Several India-bound startups have done the same to list at home rather than in the US.
• Shareholder approval for the fresh issue (May 2026).

That $150 million tax hit matters for reading the financials, because it lands squarely in the FY25 loss figure discussed below.

What Razorpay does

Razorpay was founded in 2014 by Harshil Mathur and Shashank Kumar, both IIT Roorkee graduates, and is headquartered in Bengaluru. It started as a payment gateway for online businesses and has widened into a broader financial stack for merchants:

• Payment Gateway — the core business, processing online card, UPI and netbanking payments for merchants.
• RazorpayX — neo-banking and business banking tools (current accounts, payouts, automated vendor payments).
• POS — in-store card and QR acceptance.
• Payroll — salary and compliance automation for small businesses.
• POP (UPI) — a newer consumer-facing UPI app, Razorpay's push into the consumer payments space dominated by PhonePe and Google Pay.

The company processes an estimated ₹15-18 lakh crore of payments a year and reckons it handles roughly one-sixth of India's digital commerce flow. It has raised about $742 million across 11 funding rounds over its life. More recently it has leaned into AI, pitching an "Agentic Experience Platform" that automates merchant operations.

Razorpay — financial performance (FY25)

Two numbers tell the story, and they point in different directions.

Revenue grew 65% to ₹3,783 crore in FY25, with gross profit up 41% to ₹1,277 crore. That is strong top-line growth for a company at this scale, and the core payments business turned EBITDA positive for the first time, a genuine milestone.

At the same time, the group reported a net loss of ₹1,209 crore. Most of that is not operating cash burn. The loss is inflated by the $150 million reverse-flip tax from the move back to India and by ESOP (employee stock option) charges. Strip those out and the operating picture is far healthier than the headline loss suggests. This is the single most important thing to understand before judging the company on its bottom line: read the eventual DRHP's reconciliation rather than anchoring on the ₹1,209 crore figure.

By GMV, the company processes roughly ₹15-18 lakh crore a year, the scale that underpins both the revenue growth and the platform argument it will make to investors.

Valuation: a 33% haircut from the 2021 peak

Razorpay was last valued at $7.5 billion in 2021, at the height of the funding boom. The IPO target of $5-6 billion is a step down of about 33% from that peak.

That reset is the central tension of this listing. For new public-market investors, a lower entry valuation than the 2021 private round is, on its face, attractive. For early backers who came in at or near the peak, it may disappoint. The OFS structure means some of those investors are choosing to sell at the IPO rather than wait, which is worth noting when the pricing is set.

At $5-6 billion against FY25 revenue of ₹3,783 crore, the implied price-to-sales sits in the low double digits. Whether that holds up depends on investors accepting the framing of Razorpay as a high-growth financial-infrastructure platform rather than valuing it purely on current profitability, which is still negative at the group level.

Razorpay — strengths

Scale and market position. Processing roughly one-sixth of India's digital commerce gives Razorpay a genuine moat in merchant payments, with a large, sticky base of online businesses.

Strong revenue growth. A 65% jump in FY25 revenue is well ahead of what most fintechs of this size manage, and gross profit grew alongside it.

Core business profitability. The payments business turning EBITDA positive shows the unit economics work once one-off and non-cash items are set aside.

Broad product stack. Beyond the gateway, RazorpayX, POS and Payroll deepen merchant relationships and add revenue lines, reducing dependence on transaction fees alone.

Founder-led, well-funded. Harshil Mathur and Shashank Kumar still lead the company, backed by a marquee investor list (Peak XV, Tiger Global, GIC, Y Combinator) and $742 million raised over the years.

Razorpay — risks to consider

Still loss-making at the group level. Even allowing for the tax and ESOP charges, the ₹1,209 crore FY25 net loss is large, and investors will want to see a clear path to group-level profit.

Valuation reset may disappoint early backers. A 33% haircut from the 2021 peak signals that the boom-era price was not sustainable, and some early investors are exiting via the OFS rather than holding.

Intense competition. Razorpay competes with PhonePe (Walmart-backed and deep-pocketed), a recovering Paytm, Pine Labs, Cashfree and PayU. The consumer UPI push with POP enters a market already controlled by PhonePe and Google Pay.

Regulatory exposure. Payments is a tightly regulated space. RBI rules on payment aggregators, data localisation and UPI economics can shift the ground under the business.

No DRHP filed yet. The timeline is a working target, not a confirmed schedule. Until the draft papers are with SEBI, dates can slip.

Should you watch the Razorpay IPO?

Razorpay is one of the most-watched names in India's fintech pipeline, and for good reason. It has scale, fast revenue growth, and a core business that now makes money before one-off charges. The valuation reset from $7.5 billion to $5-6 billion arguably makes the entry point more reasonable than the 2021 peak would have.

The reasons for caution are equally clear: a large reported loss, heavyweight competition led by PhonePe, and a structure where some early investors are selling at the IPO. This is a high-growth infrastructure story, and it will be priced like one.

A sensible approach as the IPO develops:

1. Wait for the DRHP. The confidential draft, and later the updated DRHP, will carry the audited financials, the loss reconciliation, and the use-of-proceeds detail that matter most.
2. Read past the headline loss. Separate the reverse-flip tax and ESOP charges from operating performance before forming a view.
3. Judge the price band against growth, not just profit. Decide whether the platform premium is justified for you once the band is set.
4. Track competition. Watch how PhonePe's own listing plans and Paytm's recovery shape the sector backdrop.
5. Size it conservatively given the risk profile, and verify any application with the IPO allotment checker after subscription.

This analysis is educational and not investment advice. Track the live GMP tracker and subscription data once an issue is formally announced, and read the RHP before deciding.

Frequently asked questions

When is the Razorpay IPO date? There is no subscription date yet. Razorpay has appointed bankers and won shareholder approval for a fresh issue, and plans to file its DRHP confidentially with SEBI in the coming weeks. The working target is a listing by the end of 2026, subject to the filing and market conditions.

What is the Razorpay IPO size and valuation? The IPO is sized at around ₹5,700 crore (about $700 million), made up of a ₹2,700 crore fresh issue and an offer for sale of roughly ₹3,000 crore. The target valuation is $5-6 billion (₹42,000-50,000 crore), down from a $7.5 billion peak in 2021.

Who are the lead managers for the Razorpay IPO? Razorpay appointed Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi as bankers in February 2026.

Is Razorpay profitable? Razorpay's core payments business turned EBITDA positive in FY25, a first. At the group level, however, it reported a net loss of ₹1,209 crore, inflated by a $150 million reverse-flip tax and ESOP charges rather than operating cash burn.

What is the Razorpay IPO GMP today? Grey market premium is only quoted once an IPO is formally announced with a price band, which has not happened yet. Track it on our live IPO GMP tracker as the issue nears.

For more on the 2026 pipeline, see upcoming IPOs in 2026, the full IPO pipeline tracker, pre-IPO and unlisted shares, 2026 listing performance, and the best brokers for IPO applications.

Last reviewed: June 2026 by ipomarket.in Editorial Team. We update this article as Razorpay moves towards its DRHP filing and an end-2026 listing. Bookmark this page or subscribe to IPO alerts.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please read the offer document carefully and consult a SEBI-registered investment advisor before investing.