Summary of this article
Razorpay files confidential draft papers for its upcoming IPO
The fintech firm aims to raise 6000 crore rupees
Razorpay targets a valuation up to six billion dollars
The first half of 2026 has been lacklustre for the primary market. With only 22 companies listing their shares on the NSE and BSE mainboards so far, the initial public offering (IPO) market has experienced a dry spell after the deluge seen in 2025, where 103 companies listed on the NSE and BSE.
Despite the sluggish start, the second half looks more promising as more and more companies are tapping the primary market to raise funds. These include several large issues, such as the Razorpay IPO. The company has reportedly filed draft papers for its public issue on June 12, hinting at a potential revival of heavyweight listings on D-Street.
Razorpay IPO: Key Details
Fintech firm Razorpay has inched closer to listing its shares on the NSE and BSE after submitting its draft red herring prospectus via the confidential pre-filing route to the Securities Exchange Board of India and the stock exchanges.
According to the report, the company is set to raise Rs 5,000 crore to Rs 6,000 crore. The fintech firm is reportedly seeking a valuation of USD 5 billion to USD 6 billion. Notably, this is lower than the company’s last private funding round, which was conducted at a valuation of USD 7.5 billion.
The public issue is likely to feature a combination of a fresh issue of shares alongside an Offer for Sale (OFS) component. Shareholders recently approved a proposal to raise up to Rs 2,700 crore via the fresh issue portion.
In FY25, Razorpay’s operating revenue grew 65 per cent year on year to Rs 3,783 crore, with gross profits reaching Rs 1,277 crore. The company posted a net loss of Rs 1,209 crore.
Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi have been appointed as the investment bankers for the issue. The company is backed by global funds such as Tiger Global, Peak XV Partners, Lightspeed Venture Partners, Y Combinator, and Singapore’s sovereign wealth fund, GIC.
The company has also concluded its reverse flip process, which has allowed it to officially shift its corporate domicile and parent entity back from the United States to India.
What is the Confidential Filing Method?
Sebi’s confidential pre-filing route is an option available to IPO-bound firms, which allows them to submit initial draft documents for regulatory review without making the financial metrics, sensitive business strategies or other sensitive public issue-related details public right away.
Unlike the traditional route, where a company's draft papers are immediately open to the public, the confidential filing method allows companies to disclose these documents at a later date. In the confidential filing route, the company first submits a pre-filed draft to the regulator. The regulator reviews the document and issues its observations entirely in private.
Once Sebi approves the papers, the company must make an updated public document available for public comments for at least 21 days before it can officially launch the IPO.
The method allows companies the flexibility to test institutional demand and iron out regulatory checkboxes in private, shielding them from market volatility until they are completely ready to price the issue.
Razorpay's Listed Peers
Razorpay was founded in 2014 by IIT Roorkee alumni Harshil Mathur and Shashank Kumar. The company operates as a digital payments platform and provides a payments infrastructure which enables startups, small businesses, and large enterprises to accept online payments via credit cards, debit cards, UPI, and digital wallets. The company has also expanded aggressively into merchant corporate banking, payroll management, automated payouts, cash flow lending, and business financial software.
The company competes with other listed peers from the digital finance domain, such as One 97 Communications, popularly known as Paytm, PB Fintech and One MobiKwik Systems. The company’s unlisted competitors include companies such as PayU India and Cashfree Payments.
