Razorpay's Reported SEBI Nod Comes With a $5 Billion Price Tag, Down From $7.5 Billion in 2021
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Razorpay's Reported SEBI Nod Comes With a $5 Billion Price Tag, Down From $7.5 Billion in 2021
Entrackr says the regulator has cleared the payments company's confidential IPO filing. Razorpay has not confirmed it, and the only public financials are for the year to March 2025.
Razorpay has received approval from the Securities and Exchange Board of India for its initial public offering, Entrackr reported on November 3, and the figure attached to it is a valuation of about $5 billion, roughly a third below the $7.5 billion it commanded in 2021. Entrackr did not name who told it, and said Razorpay had been asked for comment and had not yet answered.
So the approval is reported, not announced. A confidential filing gets no public SEBI order a reader can open, so this rests on one outlet's word until an updated prospectus appears.
What is reported about the Razorpay IPO
The Bengaluru company filed a confidential draft red herring prospectus on June 12, 2026, according to Angel One. That route lets a company talk to SEBI without disclosing detailed financials, and leaves room to delay.
Entrackr says Razorpay expects to file its final offer papers before March 2027. It puts the raise at ₹5,500 to ₹6,500 crore and attributes that figure, and the $5 billion valuation (₹49,000 to ₹50,000 crore), to a report in The Economic Times. The Terminal could not load that page, so both numbers are second-hand.
How the numbers fit together
The two figures that matter are the part that is new money and the part that is existing holders selling. MediaNama reported on May 5, from filings it sourced at the Registrar of Companies, that shareholders approved a fresh issue of up to ₹2,700 crore, with shares of ₹2 face value. An offer for sale by existing shareholders was also planned, with no size given.
If the total raise is ₹5,500 to ₹6,500 crore, the arithmetic says that more than half of it would be an offer for sale or additional fresh capital beyond the approved ₹2,700 crore. That is the author's calculation from two reported numbers, not a disclosed split. MediaNama added that any pre-IPO placement would shrink the IPO by the equity issued in it.
At that valuation the offering would be about 11 to 13 percent of the company.
| Item | Figure | Reported by |
|---|---|---|
| Confidential DRHP filed | June 12, 2026 | Angel One |
| Fresh issue approved by shareholders | up to ₹2,700 crore | MediaNama (RoC filings) |
| Reported total raise | ₹5,500 to ₹6,500 crore | Entrackr, citing Economic Times |
| Reported valuation | about $5 billion | Entrackr, citing Economic Times |
| Last private valuation | $7.5 billion, 2021 | Entrackr |
Revenue, losses and a valuation multiple
The last public financials are for the year to March 2025. MediaNama gave consolidated revenue from operations of ₹3,783 crore, up 65 percent from ₹2,296 crore a year earlier, and a consolidated net loss of ₹1,209 crore.
- FY242296 ₹ crore
- FY253783 ₹ crore
Source: MediaNama, May 5, 2026, citing Registrar of Companies filings
A ₹49,000 to ₹50,000 crore valuation is about 13 times FY25 revenue, on a company that lost about 32 paise for every rupee of it. Those inputs are stale: FY26 ended in March and its results are unpublished.
The $7.5 billion mark came in 2021, when Razorpay raised $375 million. A listing at $5 billion would price the company below that round, which leaves investors who bought in 2021 holding paper worth less than they paid.
Who is advising, and where reports disagree
Entrackr and Angel One name four bankers: Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi. MediaNama's May report listed five book-running lead managers, adding Goldman Sachs and calling the Indian arm Mahindra Capital. The company has published no list of its own.
Razorpay, founded in 2014 by Harshil Mathur and Shashank Kumar, moved its parent from the US to India in 2025 at a tax cost Entrackr puts at about $150 million.
What would confirm it
Listed Indian fintechs show how public investors price the sector: see PB Fintech's Q2 profit and MobiKwik's Q2 FY27 result.
The event that settles this is an updated draft red herring prospectus, which would be public and carry FY26 numbers, the offer-for-sale split and the names of selling shareholders. Peak XV Partners, Y Combinator and Tiger Global Management are listed by MediaNama, via Tracxn, as backers; whether any of them sell is not yet known. Until then the approval, the size and the $5 billion price all trace back to reports that Razorpay has not confirmed.
Sources
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