Razorpay IPO: Issue Date, Lot Size, Price, Everything You Need to Know

Razorpay, a Bengaluru-based fintech company offering payment processing and banking solutions for businesses, has received approval from the (SEBI) for its initial public offering. The company could list in the first quarter of calendar year 2027, following the completion of its reverse flip from the United States to India in May 2025. Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay is targeting a reported IPO valuation of approximately $5 billion.

The proposed Razorpay IPO is expected to raise approximately $500 to $600 million, although the final issue size could change depending on market conditions and investor demand. Razorpay confidentially filed its draft IPO papers with SEBI in June 2026 and appointed Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi as bankers. While the exact Razorpay IPO date remains unconfirmed in the report, the potential listing window is January to March 2027, corresponding to the fourth quarter of FY2026–27. The report does not specify the split between a fresh issue and an offer for sale.

The IPO follows Razorpay’s strategic return to India through the merger of its US-registered parent with its Indian subsidiary, Razorpay Software India completed in May 2025, the restructuring brought the parent company’s domicile back to India ahead of its planned domestic listing. For FY25, Razorpay reported consolidated revenue of ₹3,783 crore, up 65% year-on-year, and a net loss of ₹1,209 crore, primarily attributed to one-time ESOP-related expenses and tax liabilities arising from the reverse flip.

This article explains the Razorpay IPO for Indian investors, covering the reported regulatory approval, proposed listing timeline, business model, financial performance, fintech sector dynamics and valuation considerations. It also explains how to track Razorpay IPO subscription status and Razorpay IPO allotment status once the relevant offer details are announced.

Razorpay IPO Dates & Launch Details

Razorpay is currently in the pre-IPO preparation phase, having invited merchant banker pitches to select lead managers for the offering. Formal IPO dates will be confirmed only after filing the DRHP with SEBI and receiving regulatory approvals.

• IPO opening date: To be announced (mid-late 2026 target per reports)
• IPO closing date: To be announced
• Basis of allotment: To be announced
• Refund initiation: To be announced
• Expected listing date: To be announced

Lead Book Running Managers: Under selection (banker pitches ongoing)

Registrar: To be announced

Razorpay Price Band & Investment Details

Pricing details for the Razorpay IPO will be finalised closer to the launch based on market conditions and valuation discovery through book-building.

• Price band: To be announced
• Face value: Likely ₹1 or ₹2 per share (common for fintechs)
• Minimum lot size: To be announced
• Minimum retail investment: To be announced
• Maximum retail investment: To be announced

Razorpay IPO Structure

Proceeds from the fresh issue will primarily strengthen Razorpay's balance sheet for strategic acquisitions (e.g., recent Ippopay stake for POP UPI), international expansion under RBI (Reserve Bank of India) Payment Aggregator licence, and R&D in next-gen products like AI lending and wealth tech.

About Razorpay

Razorpay is a full-stack financial infrastructure provider that enables businesses to accept, manage, and disburse payments seamlessly while also offering embedded finance solutions. Established in 2014, the company has scaled rapidly amid India's digital payments boom, becoming a go-to platform for SMEs and enterprises alike.

Razorpay's core payment gateway supports 100+ methods including UPI, cards, wallets, netbanking, and EMI, backed by AI-driven fraud prevention processing $180 billion annualised TPV (Total Payment Volume). Beyond collections, RazorpayX provides current accounts, automated payouts, payroll processing, and lending products tailored for gig economy and D2C (Direct-to-Customer) brands. The platform also offers hardware POS (Point of Sale) terminals, subscription billing, and international payments via RBI authorisation.​

Recent expansions include POP (also known as Popclub), a rewards-first consumer UPI platform. This marked Razorpay's first major entry into the consumer-facing UPI space.

Key Highlights:

• Serves 10M+ businesses with a $180B annualised TPV and 65% revenue growth in FY25.
• ​40+ product launches since inception, plus first-mover in API banking for India.
• ​Diverse clientele such as E-commerce (Nykaa), mobility (Ola), edtech (Byju's), D2C (Mamaearth).
• ​$741M raised at $7.5B valuation, including cash runway post-2021 without dilution needs.
• ​India redomiciling complete (₹1,245 cr tax paid), unlocking SEBI eligibility

Razorpay Financials 

Revenue and Profit Table

Being an unlisted company, Razorpay financials are not clearly organised or declared. However, detailed financials are expected to be available in the DRHP, once it is formally released.

Key Highlights:

• Razorpay delivered high revenue expansion of 65% YoY (Year-over-Year) to ₹3,783 crore in FY25, propelled by 40%+ TPV growth in the payments gateway (crossing ₹2,000 crore standalone) and ramp-up in high-margin verticals like RazorpayX payouts and lending.
• Gross profit surged 41% to ₹1,277 crore, reflecting superior take rates (0.6-1.2% on TPV) and operating leverage from fixed-cost tech infrastructure.
• ​FY24 saw PAT (Profit After Tax) of ₹34 crore, a 4.5x jump, after years of strategic investments in market share and product suite amid regulatory challenges like the PA (Payment Aggregator) restrictions.
• The FY25 net loss of ₹1,209 crore comes from one-off ESOP (Employee Stock Ownership Plan) expenses and redomiciling taxes, with core EBITDA remaining positive and management guiding sustained PAT in FY26.
• ​Payments gateway dominance (55%+ revenue share) provides cash flow visibility, with operating leverage accelerating as TPV scales significantly on UPI volumes (14B+ monthly transactions nationally).
• Balance sheet strength from 2021 raise eliminates near-term funding risks, enabling IPO proceeds to purely fuel growth rather than survival.
• Trajectory mirrors global peers like Stripe (pre-IPO $95B valuation on similar metrics).

Sector & Market Context

India's digital payments market is growing steadily. UPI now processes over 14 billion transactions every month. This makes up more than half of all global real-time payments. Payment gateways started at $1.6 billion in size. Projections now show growth of up to $10 trillion by 2030. The compound annual growth rate sits at 25 to 30%.

Razorpay has quietly carved out a strong position by focusing on businesses and SMEs rather than everyday consumer payments. In fact, it already serves close to 40 percent of this segment. While platforms like PhonePe and Paytm dominate UPI transactions for consumers, Razorpay has gone in a different direction by building tools that businesses actually need to collect, manage, and move money at scale.

Regulation has also played a role in shaping this landscape. Recent RBI rules around data localisation and payment aggregator licences have made it harder for smaller players to survive. As a result, more than 1,000 small payment gateways have exited the market, which has worked in favour of established platforms like Razorpay that already had the compliance muscle and scale in place.

Competition hasn’t disappeared, though. Large banks such as HDFC and ICICI are pushing their own digital payment and merchant solutions, and global players like Stripe have now entered the Indian market as well. Even so, Razorpay’s early mover advantage and deep integration with businesses have helped it grow to over 10 million merchants.

Looking ahead, newer segments such as neobanking and buy-now-pay-later appear especially promising. Together, these markets could grow to nearly $50 billion, giving Razorpay room to expand beyond payments alone. At the same time, the continued expansion of UPI provides a stable backbone for future growth. That said, shifts in advertising spends and broader market sentiment could influence how aggressively fintechs invest in the near term.

Key Considerations for Investors

Strengths

• Revenue increased by 65% in FY25 to ₹3,783 crore. The company processed $180 billion in total payment volume. It holds around 40% share in payments for small and medium enterprises. The product range includes payouts and lending services.
• The company continued operations during the RBI payment aggregator pause from 2022 to 2024. It completed redomiciling to India. System uptime remained at 99.99% while handling transactions for customers like Zomato and Ola.
• The core business generates positive EBITDA.. The company has not needed to raise fresh capital since 2021.

Risks

• FY25 reported a net loss of ₹1,209 crore due to ESOP costs and redomiciling taxes. Investors should note the need for consistent profit after tax going forward. For example, Paytm share price fell significantly after its IPO launch.
• Banks offer payment services at lower rates. Companies like Stripe and PayU compete in the market. Regulations may change for cross-border payments and data handling.
• The last private valuation was $7.5 billion. This equals about 2 times FY25 revenue. The market will decide if growth justifies this level.

Opportunities

• The RBI payment aggregator licence allows international expansion. The company targets $1 billion revenue by 2030. Southeast Asia and the Middle East see growing UPI-like systems.
• Lending to small and medium enterprises represents a market over ₹10,000 crore. Payouts for gig workers and treasury services for direct-to-consumer brands provide growth areas. Transaction data supports these services.
• IPO funds can support acquisitions in wealth management or insuretech areas.

IPO Structure

• The Razorpay IPO will include a fresh issue of up to ₹4,500 crore. The company plans to use these funds for capital expenditure and possible acquisitions. There may also be an offer for sale by some early investors.
• The book-building process will help set the final price. There will likely be a small portion reserved for employees at a discount. All these quotas are yet to be confirmed though.
• Investors can apply using the UPI or ASBA method through platforms like m.Stock during the subscription period.

About the Company

Founded amid India's early startup boom, Razorpay has democratised finance for 10 million+ entrepreneurs over a decade. From Y Combinator seed to $7.5B unicorn, its DNA blends engineering rigour (IIT founders), regulatory savvy (RBI-compliant stack), and merchant obsession (zero-downtime SLAs). Post-redomiciling, Razorpay eyes global leadership in API banking.

Razorpay Final Review

The Razorpay IPO unlocks exposure to India's potentially $10T digital payments market via a proven growth machine that boasts of a 65% revenue acceleration and developer ecosystem. Yet profitability consistency, competitive challenges, and macro fintech derating warrant scrutiny in the DRHP. 

Always consider personal investment objectives and consult trusted sources before making any decisions.