Razorpay IPO: SEBI confidential filing targets $600m

What has changed in Razorpay’s IPO plan

Razorpay, the Y Combinator and Peak XV-backed fintech unicorn, has confidentially filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering, according to sources familiar with the development. The move signals a step forward in a process that has been discussed for years, but it does not yet translate into a public prospectus or an immediate launch timeline. Multiple reports and source-based updates place the proposed fundraise in the $100 million to $100 million range, with the final size expected to depend on market conditions and investor demand at the time of launch.

A key point for investors tracking the story is that the Draft Red Herring Prospectus (DRHP) has not been filed publicly yet. The company is using SEBI’s confidential pre-filing route, which keeps the draft prospectus private during the regulator’s review and makes it public only later at the updated-DRHP stage. As a result, there is no subscription date, price band, or grey market premium available at this stage.

Confidential route: why companies use it

The confidential filing mechanism lets companies submit IPO documents to SEBI without immediately disclosing detailed financials and business information to the public. In Razorpay’s case, sources said the company is following the same route used by companies such as Swiggy, Groww, Zepto and Meesho. This structure is designed to help issuers test investor appetite and refine disclosures through the review process before entering the public domain.

Because the draft is not public, most of the current information in the market is still based on shareholder approvals, banker appointments, and reported ranges for issue size and valuation. That also means reported figures could change as the process progresses.

Issue size, structure, and how numbers line up

Several versions of the expected IPO size are in circulation, but the broad range is consistent: the IPO is expected to raise around $100 million, with some reports putting the band at $100 million to $100 million. Another source-based line suggests a $100 million to $100 million raise. One set of details sizes the IPO at about ₹5,700 crore (about $100 million), with a structure comprising a ₹2,700 crore fresh issue and an offer for sale (OFS) of about ₹3,000 crore.

Separately, sources have also described the IPO as an equal mix of fresh issue and OFS, with shareholders having approved a fresh issue of roughly $100 million earlier in the year. While these numbers are broadly directionally aligned, the final mix will only be confirmed when the DRHP is filed and later updated.

Shareholder approvals and banker appointments

Razorpay has secured shareholder approval for a fresh issue of shares worth ₹2,700 crore. The approval is described as having come in May 2026 in one account, and “April” in another source-based update referring to a roughly $100 million fresh issue approval. The consistent takeaway is that the fresh issue component has been cleared at the shareholder level, which is a prerequisite for moving to the regulatory filing process.

The company has also appointed lead managers for the proposed IPO. Reported bankers include Axis Capital Ltd., Citi, Goldman Sachs, J.P. Morgan, and Mahindra Capital. Bank appointments typically indicate preparatory work around issue structuring, investor outreach planning, and regulatory documentation.

Valuation expectations and the markdown versus 2021 peak

Reported valuation expectations for Razorpay’s public market debut are in the $1 billion to $1 billion range. This is repeatedly described as lower than the company’s peak private valuation of about $1.5 billion during the 2021 startup boom. One estimate also expresses the same range in rupee terms as about ₹42,000 crore to ₹50,000 crore.

The reset matters because it reflects how public markets and late-stage private markets have repriced growth assets over the last few years. The company’s targeted valuation band is being framed as part of a broader “market reset,” rather than as an isolated adjustment.

Timeline: “within days” to “end of 2026”

On timing, reports vary, and the company’s “working timeline” appears to be contingent on when the filing lands and how market conditions evolve. Some accounts say Razorpay may file its confidential DRHP “within the next few days” or “within a week,” while another version suggests “in the coming weeks.”

For listing, one line indicates a working target of listing by the end of 2026, subject to filing and market conditions. Another account suggests the company is looking to list before the end of the current calendar year. These differences underline that the process is not yet locked, and the absence of a public DRHP reinforces that the timeline remains subject to change.

Key facts table (as reported so far)

Market context: why the IPO route matters now

One source-led commentary noted that the IPO market has been “quite a dead market this year,” and positioned a large fintech listing as potentially important for overall sentiment. Razorpay is described as one of India’s largest payments companies, so its listing process is being watched as a marker for how quickly consumer internet and fintech issuers can return to primary markets.

Still, the confidential route implies the company is balancing ambition with caution. Since the DRHP is not public yet, investors have limited verified insight into business and financial metrics that would typically shape pricing discussions.

What the company has said about timing uncertainty

In a March interview cited from Business Standard, Shashank Kumar, managing director and cofounder of Razorpay, pointed to broader uncertainty as a reason to avoid committing to a firm IPO schedule. “The current geopolitical uncertainty has created volatility in markets. Because of that, it is difficult to give a timeline. You do not want to go public in a very volatile environment,” he said, adding that key steps such as filing the DRHP and engaging with SEBI were still pending.

That comment aligns with the current situation: the company is moving forward on process, but the public stage of the filing and any launch window will depend on market stability and regulatory progression.

Background steps toward listing readiness

Razorpay’s listing preparation has included corporate actions aimed at aligning its structure with an India listing. The company completed its reverse flip to India in May 2025, shifting its domicile from the US. It has also secured board approval to convert into a public limited company, a procedural step that typically precedes an IPO filing.

In addition, reports say the company may consider a pre-IPO placement ahead of filing with regulators, which could reduce the final issue size. No final decision is confirmed in the reported information, but the possibility is being tracked because it can alter the eventual mix and headline fundraising figure.

Conclusion

Razorpay’s confidential filing with SEBI marks a concrete move toward an IPO, with reported fundraising expectations of $100 million to $100 million and a targeted valuation of $1 billion to $1 billion. The structure is expected to include a fresh issue cleared by shareholders and an OFS component, but final details remain unconfirmed until a public DRHP appears. Near-term attention will stay on when the confidential filing progresses to an updated public draft, and whether the company’s working listing timeline aligns with market conditions and SEBI review milestones.