Fintech unicorn Razorpay gets Sebi nod for IPO

Y Combinator- and Peak XV-backed fintech unicorn Razorpay has received approval from the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO), according to an industry source .

The Bengaluru-based company is targeting a stock market debut as early as the first quarter of calendar year 2027, at a valuation of around $5 billion, the source said.

While Razorpay has not disclosed the size of the proposed public offering, people familiar with the matter said the issue is likely to be in the range of ₹5,000-6,000 crore. The final issue size, valuation and listing timeline will depend on regulatory requirements, prevailing market conditions and other factors.

In June, the company filed its IPO paper through the confidential pre-filing route, which allows issuers to submit draft offer documents to Sebi for review without immediately making commercially sensitive details available in the public domain. The mechanism has increasingly gained traction among startups and technology companies looking to retain flexibility ahead of their public listings.

Expands beyond core payments business

Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay has grown into one of India's leading full-stack financial technology companies. Headquartered in Bengaluru, it offers an integrated suite of services spanning payment acceptance, banking, payouts, payroll, lending and other financial solutions.

Having expanded beyond its core payments business, Razorpay has been building a comprehensive financial services ecosystem for businesses. Its platform allows enterprises to manage collections, vendor payments, payroll, cash flows and access to credit through a single interface.

The company caters to millions of businesses across the country, including startups, small and medium enterprises (SMEs) and large corporations. Razorpay achieved unicorn status in 2020 and has since emerged as one of India's prominent players in the fintech ecosystem.

Its investor base includes several marquee global names, such as Peak XV Partners, GIC, Tiger Global, Ribbit Capital, Lone Pine Capital, Alkeon Capital and TCV.

Razorpay's IPO plans come at a time when India's primary market is witnessing strong activity, with several technology-driven businesses evaluating public listings. Its move also comes against the backdrop of rival PhonePe reportedly putting its IPO plans on hold amid geopolitical tensions in West Asia and heightened market volatility.

PhonePe was reportedly considering raising around $1.5 billion through its proposed offering at an estimated valuation of approximately $15 billion.