SEBI Clears Razorpay's IPO: $5 Billion Listing Takes Shape

SEBI has approved Razorpay's initial public offering, clearing the Bengaluru fintech unicorn to raise Rs 5,500–6,500 crore (roughly $650–780 million) at an expected valuation of $5 billion, or Rs 49,000–50,000 crore. Sources familiar with the development confirmed the regulator's sign-off, which moves one of India's most closely watched fintech listings from rumor to runway.

That's a meaningful haircut from the company's private-market peak. Razorpay was last valued at $7.5 billion in 2021, when it raised $375 million at the top of the funding cycle. An IPO at $5 billion would mark a step down of about a third — a reminder, for practitioners, that 2021 vintage marks are getting repriced wherever public-market discipline applies.

What did the path to approval look like?

Razorpay confidentially filed its draft red herring prospectus (DRHP) with SEBI in June 2026. The confidential route lets a company test regulator sentiment without exposing its financials to competitors early — a tactic increasingly favored by Indian startups weighing volatile markets.

According to an Economic Times report, the company is targeting the Rs 5,500–6,500 crore raise at the $5 billion valuation. Sources say Razorpay expects to file its final IPO papers before March 2027, which puts the actual listing within reach of the next fiscal year.

Media reports indicate four banks will run the deal:

• Axis Capital
• Kotak Mahindra Capital
• JP Morgan
• Citi

That's a heavyweight roster spanning domestic distribution muscle and global institutional reach — the kind of line-up you assemble when you want both Indian retail flows and international anchor demand.

What does this change for the company and its merchants?

Razorpay has spent more than a year re-engineering itself for public markets. In April 2025, it converted into a public limited company as part of its IPO preparations. Later that year, it completed its reverse flip, shifting its domicile from the US to India — a process that cost around $150 million in taxes related to the transition.

The reverse flip matters beyond paperwork. Indian domicile is effectively a precondition for a domestic listing, and the $150 million tax bill signals the company was willing to pay real money, roughly a fifth of what it raised in 2021, to come home.

Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay started as a payment gateway for businesses and has since expanded into business banking, lending and payment solutions for merchants. For the merchants in its ecosystem, a listed Razorpay means more disclosure, more capital and, in theory, a more durable counterparty across payments and credit.

The company has also kept expanding while prepping the float. Most recently, Razorpay received the final Payment Service Provider (PSP) licence from the International Financial Services Centres Authority (IFSCA) to operate in GIFT City, Gujarat. The licence lets it offer payment services to businesses operating in the International Financial Services Centre — a beachhead in cross-border money movement from India's financial hub.

What's the so-what?

An IPO at $5 billion against a $7.5 billion private mark will be read as a benchmark, fairly or not, for how public investors value Indian fintech after the 2021 boom. Expect Razorpay's final papers before March 2027 to be the moment the numbers — revenue, growth, lending book quality — finally go public. Entrackr has reached out to Razorpay for comment; the story will be updated once the company responds.