Razorpay reportedly plans $500m IPO

Razorpay, a Bengaluru-based digital payments firm, has begun formal preparations for an IPO and is seeking to raise up to 4,500 crore rupees (US$500 million), according to sources.

The company has invited merchant bankers to pitch for the IPO mandate, with Kotak Mahindra and Axis Capital among the leading contenders for the underwriter role.

Razorpay was last valued at US$7.5 billion after raising US$375 million in 2021 and counts GIC, Peak XV Partners, Z47 (formerly Matrix Partners India), and Tiger Global as investors.

The public issue may launch by year-end, but the timing and final amount could change.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Razorpay IPO hinges on RBI compliance and profitability path

Razorpay received an RBI cross-border payment aggregator license, which lets it process international payments for merchants 1. This completes approvals across online, offline, and cross-border aggregation 2.
RBI moved faster on fintech licenses in 2025 than in 2021 to 2023 after escrow and governance scrutiny led to temporary curbs on firms such as Razorpay 2. Quicker approvals help IPO prep.
Revenue grew 65% to Rs 3,783 crore. The firm still posted a FY25 net loss tied to restructuring and US$150 million in redomiciling taxes. Investors will watch for profit gains before a year-end IPO plan.

Partners can tap Razorpay’s merchant network

Razorpay serves over 5 million businesses 3. Its Partner Program pays commissions on transactions from referred clients, with no cap and automated settlements 4. Typical partners include web developers, digital agencies, or technology firms 4.
The program offers ready-made APIs and SDKs with plugins for major e-commerce platforms 4. It also gives Know Your Customer (KYC) workflows plus dashboards for multi-client management 4. Software as a Service (SaaS) firms or Enterprise Resource Planning (ERP) providers can integrate to reach Razorpay’s merchants.
An IPO could lift merchant growth, which would widen the partner ecosystem. Providers of accounting software, inventory tools or marketing suites should explore partnerships now since faster acquisition can create distribution gains.