Razorpay Cleared for Rs 6,000 Crore IPO as Premji Invest Hunts Defence Deals

Razorpay has secured Securities and Exchange Board of India (Sebi) approval for a Rs 5,000-6,000 crore IPO and is targeting a stock market debut as early as December, according to people aware of the matter. The Bengaluru-based digital payments firm is working toward a listing in the first quarter of calendar year 2027, though volatile market conditions could push that timeline back. Final launch and pricing will depend on investor demand.

The valuation math is the real story for practitioners. ET reported on April 20 that Razorpay was preparing a confidential filing to raise Rs 5,500-6,500 crore at an expected valuation of $5 billion (Rs 49,000-50,000 crore) — below the $7.5 billion it commanded in its 2021 private round. Interest since then has come in at a lower $3 billion mark, per people in the know. That's a potential 60% haircut from peak private pricing, a benchmark for every late-stage Indian startup weighing an exit. Razorpay completed its move from the US to India in May 2025; Axis Capital, JPMorgan, Citi and Kotak Mahindra Capital are advising.

What does Premji Invest's defence push signal?

Premji Invest is in talks to back two Bengaluru-based companies: defence electronics maker Sanlayan Technologies and aerospace components manufacturer Hical Technologies. Premji Invest and Singularity AMC are likely to lead a $30-40 million round in Sanlayan at a valuation of around $200 million. Separately, Premji Invest is in advanced talks to lead Hical's first institutional $30-40 million fundraise alongside TVS Capital. The firm has also put Rs 300 crore into Bharat Forge subsidiary JS Auto Cast.

The backdrop matters: India is pushing to cut defence imports, raise domestic procurement and expand exports, opening room for private manufacturers. Premji Invest is positioning itself behind indigenous defence technology developers and makers of critical components.

How will the gig worker levy be calculated?

Food delivery and ride-hailing companies have proposed conflicting methods for the planned social security fund for gig workers. Zomato and Swiggy want the levy — likely around 2% — calculated on the total value of orders on their platforms. Uber and Rapido argue it should apply only to their own turnover, since most of the fare goes straight to drivers and a transaction-value levy would tax money they never retain.

Under the Social Security Code, 2020, workers qualify for benefits after 90 days with a single aggregator in a financial year, or 120 days cumulatively across platforms.

Where else is the money flowing?

Fine jewellery brand Giva raised over $100 million in a round led by Multiples Alternate Asset Management, with Epic Capital and Edelweiss Growth Fund participating. The round — among the sector's largest — mixed primary and secondary capital. Early backers India Quotient and Sixth Sense Ventures exited partially, founder Ishendra Agarwal told ET. Giva plans to expand retail footprint, manufacturing capability and leadership.

AI chip startup Agrani Labs is in the final stages of closing a $108-110 million round at roughly $350 million valuation, expected to close within a month. Peak XV Partners is leading and putting in more than half the total, with Google, Samsung Ventures and Stargazer — Groww founders' investment vehicle — also expected in. The valuation marks a sharp jump from the $160-200 million discussed in September negotiations; ET had earlier reported talks to raise Rs 800-850 crore from Samsung, 360 ONE and Peak XV.

Two slower-burn stories round out the picture. Cybersecurity safeguards for the operational technology running India's refrigeration and cold-storage systems remain at an early stage, raising attack exposure as the sector digitises, experts told ET. And India's top eight IT firms spent about $7.5 billion on acquisitions over the past year — the most in the history of the $315 billion industry — as bought businesses get consolidated into reported revenue.

For operators and investors, the week's through-line is repricing: Razorpay may list well below its private peak, and Agrani doubled its valuation in two months. The gap between those two tells you where the market currently pays up — chips and defence, not payments.