Razorpay’s IPO Moves From Buzz to Action as $700 Million Plan Takes Shape
India’s fintech IPO pipeline may be heading for one of its most closely watched offerings as Razorpay has initiated formal preparations for a potential public listing. The Bengaluru-based payments major has shortlisted four investment banks to steer what could become a $700 million-plus IPO, signaling that the company is entering a serious pre-listing phase after years of private market growth.
According to multiple industry sources, the IPO is expected to include a mix of primary and secondary share sales, allowing the company to raise fresh capital while also offering partial exits to existing investors. While timelines are not yet public, the appointment of bankers typically marks the first concrete step toward a draft prospectus and regulatory filings.
For public market investors tracking India’s new-age tech space, Razorpay’s move is being seen as a potential sentiment booster for the fintech segment.
Razorpay Picks Four Global and Domestic Banks to Lead the IPO
People familiar with the matter said Razorpay has selected:
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Axis Capital
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Kotak Mahindra Capital
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JP Morgan
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Citi
for its IPO syndicate.
One source said:
“Post recent pitches, Razorpay has picked Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi for its IPO syndicate.”
Another added:
“The IPO is likely to be a combination of primary and secondary issue of shares. These are early days but the plan is for the issue size to be in excess of $700 million.”
Two additional sources confirmed the development, with one noting that more banks could be added later depending on market conditions and issue size. All spoke on condition of anonymity. Razorpay declined to comment when contacted.
Also Read : Marushika Tech IPO Details Unpacked — What Do Subscription Patterns and GMP Mean for Investors?
Strong Valuation and Revenue Growth Strengthen the IPO Case
Founded in 2014 by Harshil Mathur and Shashank Kumar, both IIT Roorkee alumni, Razorpay has evolved into one of India’s leading omnichannel payments and banking platforms for businesses.
Data from Tracxn shows:
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Total funding raised: $742 million across 11 rounds
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Post-money valuation (June 2025): $9.2 billion
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Revenue (FY25): ₹3,900 crore
The company counts marquee investors such as GIC, Peak XV, and Tiger Global among its backers, along with Matrix Partners, Y Combinator, Ribbit Capital and Lightspeed.
This scale and investor pedigree could help Razorpay command strong institutional interest if market conditions remain supportive.
Strategic Expansion Signals Long-Term Ambition
Razorpay has not just grown organically but also through strategic bets. In June 2025, it invested about $30 million in consumer payments platform POP, marking a push into India’s rapidly expanding UPI-driven consumer ecosystem.
The company’s website describes it as a full-stack payments solution enabling businesses to accept and disburse payments across:
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Credit and debit cards
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Net banking
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UPI
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Digital wallets
In December, Razorpay secured the RBI’s Payment Aggregator–Cross Border (PA-CB) licence, allowing it to facilitate both inward and outward cross-border transactions. This regulatory milestone opens new revenue streams in global commerce and cross-border trade flows.
Competitive Landscape Heats Up in Fintech IPO Race
Razorpay operates in a crowded but high-growth fintech space. Its competitors include PayU, Adyen, and Stripe.
Meanwhile, India’s fintech listing wave is gathering pace:
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Groww and Pine Labs have debuted in public markets
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One Mobikwik Systems is listed
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PhonePe and Turtlemint are IPO-bound
Notably, One97 Communications (Paytm) shares have surged nearly 50% in the past year, improving sentiment around listed fintech names and possibly reopening investor appetite for the sector.
Here’s What Happened Today and Why Traders Reacted
Today’s market chatter around Razorpay’s IPO preparations triggered fresh discussions in fintech and startup-focused investor circles.
Traders and market participants reacted because:
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Appointment of bankers signals IPO seriousness
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Large potential issue size attracts institutional focus
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Fintech sentiment has improved after Paytm’s rebound
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India’s digital payments growth story remains strong
Even though Razorpay is unlisted, news flow around major IPO-bound startups often influences sentiment in listed fintech and tech-enabled financial stocks.
What Impact This Could Have on Markets and Investors
If Razorpay proceeds with a $700M+ IPO, it could become one of the largest fintech listings in India’s recent history. That carries several implications.
Potential market impact:
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Could revive primary market interest in tech IPOs
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May improve valuations of listed fintech peers
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Likely to draw significant foreign institutional interest
Investor portfolio impact:
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Offers exposure to India’s digital payments growth
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Appeals to long-term investors bullish on fintech
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May attract both growth and tech-focused funds
However, valuation discipline will be key. Investors are now more selective after earlier tech IPO volatility.
Razorpay’s IPO Could Test the Next Phase of India’s Fintech Story
Razorpay’s public market debut, if executed well, could serve as a litmus test for how far Indian fintech valuations and narratives have matured. With strong revenue scale, regulatory licences, and deep investor backing, the company has many ingredients public investors look for.
Still, market timing, pricing, and profitability visibility will determine whether the IPO becomes a blockbuster or a measured success. For now, Razorpay’s banker appointments mark the beginning of what could be one of the most watched IPO journeys in India’s fintech space.
