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Razorpay, one of India’s most prominent fintech companies, has confidentially filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India. The move places the Bengaluru-based payments processor squarely in a growing lineup of Indian startups testing public market appetite without the usual fanfare.
The company is targeting a raise of approximately $600 million, with estimates ranging from $500 million to $700 million. Razorpay is eyeing a valuation between $5B and $6B, a meaningful haircut from its peak valuation of $7.5B.
The confidential playbook
Companies like Swiggy, Groww, and Zepto have all opted for the confidential filing process, which lets startups gauge investor interest and market conditions before committing to the full glare of a public listing.
Razorpay’s filing came around mid-June 2026, following preparations that began in April. The timeline suggests the company had been methodically building toward this moment rather than rushing to capitalize on a fleeting market window.
From Delaware to Bengaluru
Before Razorpay could even think about listing in India, it had to untangle a structural problem that plagues many Indian startups: its parent company was domiciled in the US. Founded by Harshil Mathur and Shashank Kumar, Razorpay had historically raised approximately $740 million in total funding from investors including Y Combinator, Peak XV Partners, and Tiger Global, much of it channeled through a US-based parent entity.
In May 2025, the company completed a reverse domicile merger, folding its US parent into its Indian entity, a prerequisite for listing on Indian exchanges.
The financial picture heading into the IPO looks significantly healthier than it might have a few years ago. Razorpay reported 65% revenue growth in the fiscal year 2025, and its core payments business has become EBITDA-positive.
What this means for investors
The valuation reset is worth examining closely. Razorpay’s target range of $5B to $6B represents a discount of roughly 20% to 33% from its $7.5B peak.
Razorpay’s 65% revenue growth paired with EBITDA-positivity in its core business represents a narrative that public market investors have been demanding: show me growth, but also show me a path to real profitability.
The competitive landscape in Indian digital payments is also worth watching. Razorpay operates in a market alongside major players like PhonePe and Paytm, both of which have their own public market stories playing out.
One risk factor that shouldn’t be overlooked: regulatory uncertainty in India’s fintech sector remains a persistent concern. The Reserve Bank of India has been increasingly active in setting guardrails for digital lending, payments, and data privacy.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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