(Image Source: Razorpay)
Razorpay wants to go public through an IPO that could bring in up to INR 4,500 crore. The payment company plans to list on Indian stock exchanges sometime in 2026. Talks put the company’s value between $12-15 billion. This comes after years of fast growth, handling payments, loans, and payroll for more than 8 million businesses.
The IPO will mix new shares sold by the company with existing shares sold by investors. Big names like Sequoia Capital India, Tiger Global, and Y Combinator might sell some holdings. Razorpay plans to spend new money on technology improvements, growth overseas, and new banking products.
Razorpay Financial Numbers and Business Growth
Payment Volume and Revenue Breakdown
Razorpay handled over INR 15 lakh crore in payments during FY25. That’s 45 percent more than the year before. The company makes money from merchant payments plus other areas like RazorpayX for business banking, Route for shipping, and Rize for business loans. It reached profitability in the third quarter of FY25 with earnings before interest and taxes around 8-10 percent of revenue.
Here are the main financial figures:
- Yearly payment volume: INR 15 lakh crore (FY25)
- Revenue increase: 45 percent from last year
- Active business customers: 8 million plus
- Profit margin: 8-10 percent (Q3 FY25)
- Target company value: $12-15 billion
Overseas work brings in 15 percent of revenue through deals in Southeast Asia and Middle East countries. In India, Razorpay holds about 25 percent of the online payment market behind PhonePe and Paytm.
What Sets Razorpay Apart from Rivals
Razorpay stands out with easy-to-use software tools for developers and support for over 100 payment types. It handles subscription billing well. The company works with different industries from direct-to-consumer brands like Mamaearth to education companies and gaming platforms like Dream11. Recent buys have improved overseas payments and accounting tools.
When the IPO Might Happen and Price Talks
Why List Now and Market Setup
The timing works after a strong 2025 for new stock listings. Earlier fintech companies like Paytm and PB Fintech give price examples, though Razorpay wants higher numbers since it’s making profits now. The top value hit $7.5 billion back in 2022. Current talks aim higher because earnings keep growing.
Company leaders say listing gives steady access to cash and follows RBI rules for payment companies. Going public also helps with buying other companies and hiring against global competition from Stripe and Adyen.
Price Goals and What Investors Expect
Razorpay wants $12-15 billion value, which means asking 8-10 times yearly sales. That’s more than Paytm trades at now around 4 times sales. Making profits helps support a higher price compared to companies still losing money. Mutual funds and Singapore’s GIC might buy shares early.
What Drives Growth and Problems Ahead
Plans for India and Overseas
Razorpay wants to double overseas revenue to 30 percent using offices in UAE and Singapore. Those spots target $100 billion in money flows between India and Middle East. In India growth comes from new UPI features, credit through UPI, and rules around card data. New areas include healthcare payments and government systems.
Rules and Competition Issues
RBI keeps close watch on costs for following rules and keeping data in India. PhonePe fights back by linking payments with banking services. Banks build their own systems too. Low UPI prices squeeze profits on basic payment processing.
Why Razorpay Listing Matters
The IPO shows India’s fintech companies reaching maturity. Doing well proves that focusing on profits works better than just growing fast and losing money. A strong listing sets prices for over 50 payment startups waiting to go public.
The money raised gives three years of cash for expansion overseas and lets early investors cash out some shares. Razorpay balances making money now with building new products, which puts it in a good position among fintech companies listing through 2026 and 2027.
