Razorpay moves closer to IPO with board nod to go public

Digital payments firm Razorpay has secured board approval to convert into a public limited company, bringing it a step closer to its planned stock market debut in India.

The development comes as the Bengaluru-based firm begins the process of reverse flipping its parent entity from the United States to India.

“As part of our redomiciling to India, we are initiating the process to become a public company, well before our IPO in around two years, to align with best governance practices and build early readiness,” said a Razorpay spokesperson.

News website Entrackr first reported the development.

Chief executive Harshil Mathur told ET in December that the company was targeting full profitability within 18 months, and aiming to go public in two years.

Razorpay, which received the Reserve Bank of India’s payment aggregator licence in December 2023, processes about $180 billion in transactions annually. Its payments business reported revenue of Rs 2,501 crore in FY24, with a net profit of Rs 34 crore. While the core business turned profitable, the company’s overall operations recorded a net loss.

Founded in 2014, Razorpay has raised about $740 million from investors including Peak XV Partners, Z47 ( formerly Matrix Partners), GIC, and Ribbit Capital. It was last valued at $7.5 billion in 2021.