Digital payments leader Razorpay has received board approval to transition into a public limited company, marking a pivotal move in its journey toward a public listing in India.
This step is part of Razorpay’s broader strategy to redomicile 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,” a Razorpay spokesperson told Entrackr.
Razorpay at a Glance
Founded in 2014, Bengaluru-based Razorpay has emerged as one of India’s most prominent fintech startups. The company offers a comprehensive suite of payment and banking solutions for businesses and processes approximately $180 billion in transactions annually.
In December 2023, Razorpay further solidified its standing in the digital payments ecosystem by securing a payment aggregator licence from the Reserve Bank of India.
On Track for IPO
The conversion into a public entity is a significant milestone in Razorpay’s IPO roadmap. Co-founder and CEO Harshil Mathur previously indicated that the company is targeting an IPO in about two years. Speaking to The Economic Times in December 2023, Mathur shared that Razorpay aims to reach full profitability within 18 months.
For the fiscal year ending March 2024 (FY24), the company’s core payments business reported revenue of ₹2,501 crore and a net profit of ₹34 crore.
Strong Backing from Global Investors
To date, Razorpay has raised around $740 million from top-tier investors, including Peak XV Partners (formerly Sequoia India), Z47 (formerly Matrix Partners India), GIC, and Ribbit Capital. The company was last valued at $7.5 billion during its 2021 fundraising round.
Razorpay’s transition to a public company sets the stage for one of the most anticipated fintech IPOs in India’s startup landscape.
