Razorpay reportedly gets SEBI nod for Rs 6,000 crore IPO
Entrackr reports Razorpay has SEBI approval for its IPO, reportedly Rs 5,500-6,500 crore at about $5 billion, below its 2021 valuation of $7.5 billion.
Razorpay, one of India's best-known payments startups, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering, Entrackr reported on 3 November, citing sources and an Economic Times report. The reported issue size is Rs 5,500 to 6,500 crore at a valuation of about $5 billion. Neither SEBI nor Razorpay has confirmed the approval in the pages read for this briefing, so the details below should be treated as a single-source report.
What Entrackr reported
According to Entrackr, Razorpay is targeting Rs 5,500 to 6,500 crore, with an expected valuation of about $5 billion, which it converts to Rs 49,000 to 50,000 crore. The company was last valued at $7.5 billion in 2021, when it raised $375 million. If the reported valuation holds, the IPO would price Razorpay about a third below that private high.
The report names Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi as the bankers running the issue. It says Razorpay filed its draft papers confidentially with SEBI in June 2026 and is expected to file final IPO papers before March 2027. The article does not say how the issue splits between new shares and shares sold by existing investors, and it gives no revenue or profit figures. Entrackr says it asked Razorpay for comment and will update if the company responds. No quote from the company or SEBI is carried.
How a confidential filing works
Normally a company planning an IPO files a draft red herring prospectus (DRHP) that anyone can read, including its financials and risk factors. Under SEBI's confidential pre-filing route, a company submits the draft without publicly disclosing sensitive business and financial information at the early stage, as Business Today explained when it reported Razorpay's June filing. SEBI reviews it and sends observations. Once cleared, the company must file an updated public document before the issue opens.
That matters for how to read the news. "Approval" here most likely means SEBI has completed its review and given its observations, which lets Razorpay proceed. It is not the same as a listing date, and it does not set the price. No IPO date has been announced in the sources read.
Who Razorpay is, and what it earned
Business Today describes Razorpay as a Bengaluru-based company founded in 2014 by Harshil Mathur and Shashank Kumar, offering payment processing and banking tools for businesses. Its investors include GIC, Peak XV Partners and Tiger Global, it reports. Entrackr adds that the company's products include a payment gateway and business banking, lending and payment tools for merchants, and that it recently received a final Payment Service Provider licence from IFSCA to operate in GIFT City in Gujarat.
Razorpay completed a reverse flip, moving its parent from the United States to India, in 2025. Entrackr says the company paid about $150 million in taxes linked to that move. Business Today reports consolidated revenue of Rs 3,783 crore, up 65% from Rs 2,296 crore, gross profit of Rs 1,277 crore against Rs 906 crore, and a net loss of Rs 1,209 crore driven by one-time ESOP expenses and reverse-flip tax liabilities. That article's dating of those figures is inconsistent: it labels them FY25 but also refers to February 2024, so treat them as indicative until the DRHP is public.
An ESOP is an employee stock option plan; the expense is an accounting charge for shares promised to staff. A reverse flip is when a startup that set up its parent abroad moves its home back to India, usually ahead of a domestic listing.
Why the valuation matters
The pricing is the most debated number in the story. A valuation of about $5 billion against a 2021 mark of $7.5 billion would be a down-round listing. Many Indian startups that raised at peak valuations in 2021 have faced the same adjustment. The gap does not say Razorpay is worse off: revenue has grown, and 2021 prices came at a time of unusually cheap money. It does mean that investors who bought in at the peak may sell at a loss on paper unless they bought in earlier.
The reported size is also uncertain. Business Today put the issue at more than $500 to 600 million, or about Rs 5,500 to 6,000 crore, and noted it could change with market conditions and investor demand. Entrackr's range goes up to Rs 6,500 crore. Neither article gives a split between fresh issue and sale by existing holders, which determines how much of the money goes to the company and how much to investors cashing out.
What it means for founders, investors and users
For startup founders, a large payments company moving toward listing is a marker that the public market is open to fintech again, though a lower valuation shows the window is selective. For merchants who use Razorpay's gateway, nothing changes immediately; a listing brings disclosure of financials and regular reporting. For people thinking about the IPO as investors, the draft's public version is the document that will state risks and numbers. This briefing does not give investment advice.
The simulator below shows what an issue of this size means as a slice of the company. It uses the reported midpoint of about Rs 6,000 crore and an expected valuation of about Rs 49,500 crore. The split between fresh issue and sale by existing holders is not reported, so it is a slider you can move.
What is confirmed, what is not, and what is unknown
Confirmed by documents read for this briefing: Razorpay filed draft papers confidentially in June 2026 (Business Today), and Entrackr reports the filing as made then. Reported but not confirmed: that SEBI has now approved the issue, the Rs 5,500 to 6,500 crore size, the $5 billion valuation and the names of the bankers. Unknown: the split between new shares and sale by existing holders, the price band, the date, and the audited financials. The company's own FY25 numbers, as Business Today gave them, show strong revenue growth but a large net loss, so the draft's final version will matter. Business Today also lists GIC, Peak XV Partners and Tiger Global among investors, so the sale-by-existing-holders share will decide how much of the money leaves the company.
For comparison, a company that lists via the confidential route typically has a limited window after SEBI's observations to open its issue, so a listing in the first half of 2027 would fit Entrackr's note that final papers are expected before March 2027. That timeline is an inference from the report, not a stated date.
What to watch next
The first thing to look for is a statement from Razorpay or SEBI confirming the approval and the observations. The second is the public DRHP, expected before March 2027 according to Entrackr, which will carry audited revenue, losses, the fresh-issue and sale split, and the stated price band once set. The third is how other large fintech listings are priced in the meantime, since they will set the mood for Razorpay's price.
Key takeaways
- Entrackr reports, from sources, that SEBI has approved Razorpay's IPO; neither SEBI nor Razorpay was quoted, so this is a single-source report.
- The reported issue is Rs 5,500 to 6,500 crore at about $5 billion, against a 2021 valuation of $7.5 billion.
- Razorpay filed confidentially in June 2026 and is expected to file final papers before March 2027.
- Business Today reported revenue of Rs 3,783 crore and a net loss of Rs 1,209 crore, driven by one-time ESOP and reverse-flip tax costs, but the dating of those figures is unclear.
- The split between new shares and sale by existing investors has not been reported.
Sources
- [Entrackr: Razorpay receives SEBI approval for IPO](https://entrackr.com/news/razorpay-receives-sebi-approval-for-ipo-12780674)
- [Business Today: Razorpay files confidential DRHP to launch its IPO](https://www.businesstoday.in/markets/ipo-corner/story/fintech-unicorn-razorpay-files-confidential-drhp-to-launch-its-ipo-check-details-537107-2026-06-16)
Tags: Razorpay IPO SEBI Fintech Payments