Razorpay plans IPO post-FY26, India domicile process to close in 6-12 months: CEO Harshil Mathur

Harshil Mathur

Merchant payment processing unicorn Razorpay is planning to go for an Initial Public Processing (IPO) after two years as its reverse flipping process to India is set to close in the next six to twelve months.

"We have already initiated the process of reverse flipping to India and this is going to take anywhere between 6-12 months to complete. We have accounted for the cost and everything... Expect IPO to be two years after our businesses break even," Harshil Mathur, co-founder and CEO of Razorpay told Moneycontrol.

Razorpay initiated the process to move its parent entity to India from the United States in May 2023, ahead of its plans to list in the Indian bourses.

Founded in 2014 by Shashank Kumar and Mathur, Razorpay is backed by investors like Y Combinator, GIC, Sequoia Capital India, Ribbit Capital, Matrix Partners, MasterCard, and others who have collectively invested over $740 million in the company. The company was last valued at over $7 billion.

Razorpay also clocked annualised total payment volume (TPV) of around $150 billion as of February 2023. In 2022, the firm clocked a TPV of $90 million.

"We expect to grow at a modest rate of 35-40 percent next fiscal and now that we are able to onboard new merchants, we will see more growth in the Razorpay payment gateway, " Mathur added.

In December, Razorpay received the final authorisation from the Reserve Bank of India (RBI) to operate as Payment Aggregators (PA) and was allowed to onboard new merchants on its platform after almost two years.

The company's payment business is profitable and the firm is looking to make all its non-payment businesses profitable as well.

"Payment business is already profitable, but around 35-40 percent of our revenues also come from non-payment businesses. So, we want to make everything profitable before going for an IPO, " Mathur added.

Razorpay also announced a slew of new products including Payment Gateway 3.0 with features like Trusted Badge, Coupon Codes, COD fraud protection, and quick buy technology, at its annual Razorpay FTX event held in Bengaluru on February 23.

During the event, the firm also launched an AI assistant tool, Ray, which would help customers address queries on payment, payouts, vendor payments, and more.