Razorpay prepares confidential IPO filing, targets up to USD 6 bn valuation

Bangalore-based fintech firm Razorpay is preparing to confidentially submit draft papers for an IPO to the Securities and Exchange Board of India (Sebi) in a few weeks, as it moves ahead with listing plans, Economic Times reports.

Valuation expectations: The company is likely to target a valuation in the range of USD 5-6 bn, below its peak of around USD 7.5 bn four years ago. This revised valuation comes amid investors placing greater emphasis on profitability visibility and sustainable growth.

Razorpay? Founded in 2014, Razorpay is a fintech firm offering payment gateway and banking solutions to startups and small businesses. It processes around USD 180 bn in annual payment volume and has expanded into consumer payments through acquisitions. The firm also offers clearance for online platforms in AED.

Issue size in focus: The IPO could raise USD 600-700 mn, although the final size will depend on investor demand and broader market sentiment at the time of launch.

Confidential filing route: Razorpay is expected to use Sebi’s confidential pre-filing framework, which allows companies to test investor appetite and refine disclosures before making financial details public.

Pre-listing steps: The company has already shifted its domicile to India from the US and converted into a public limited entity — both key prerequisites for a domestic listing.

Market backdrop: The planned IPO comes at a time when investor appetite for new-age technology listings remains dim. Around 37 companies targeting a combined INR 440 bn (USD 5.3 bn) have delayed listings amid volatility linked to the Iran conflict, with Sebi allowing approved issuers to defer launches without refiling.