Razorpay files confidential papers with SEBI for a potential $600 million IPO

Razorpay, a full-stack financial solutions company, has filed confidential draft papers with market regulator Securities and Exchange Board of India (SEBI) for an initial public offering. The payment solutions provider pre-filed DRHP on June 12.

In a public notice on Monday, the company, without disclosing the size of the proposed issue, said it has filed "the pre-filed draft red herring prospectus with Sebi and the stock exchanges... in relation to the proposed initial public offering of its equity shares on the main-board of the stock exchanges".

The initial public offering could be a mix of a fresh issuance of shares as well as an offer for sale (OFS) component.

The confidential filing route allows firms to submit draft offer papers to SEBI for review without immediately disclosing sensitive business information to the public.

Axis Capital, JPMorgan, Kotak Mahindra Capital and Citi are the issue's book-running lead managers.

Razorpay had reported a 65% increase in its consolidated revenue from operations to ₹3,783 crore in the financial year 2024-25, compared to ₹2,296 crore in FY24. The growth was driven by solid execution across its banking, payment gateway, POS and international businesses.

The company's gross profit advanced 41% YoY to ₹1,277 crore in FY25 compared to ₹906 crore a year back. The Bengaluru-headquartered firm posted a loss in FY25 post ESOP-related expenses of ₹1,209 crore.

Razorpay is a comprehensive payments suite that helps businesses accept, process, and disburse payments. It allows businesses to access all payment modes, including debit card, credit card, net banking, UPI and popular wallets including Mobikwik, Airtel Money, JioMoney, Ola Money, PayZapp and FreeCharge.

The company is backed by investors including GIC, Tiger Global, Ribbit Capital, Peak XV Partners, Alkeon Capital, Lone Pine Capital and TCV.