Razorpay To Soon File Confidential DRHP To Raise $600-$700 Mn: Report

Fintech unicorn Razorpay is preparing to file its DRHP via the confidential route in the next few weeks. 

As per an ET report, the company is planning to raise $600 Mn to $700 Mn (around ₹4,980- ₹5,810 Cr) at a valuation of $5 Bn to $6 Bn, lower than its last private valuation of $7.5 Bn. 

Razorpay declined to comment on Inc42’s queries on its IPO plans. 

The development comes months after it was reported that Razorpay shortlisted four investment bankers – Axis Capital, Kotak Mahindra Capital, JP Morgan and Citi – to helm its IPO. 

Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay offers a full-stack payments and financial services platform, offering payment acceptance, disbursals, lending and business banking solutions. 

It claims to cater to more than 80 Lakh businesses. Nearly 80% of its customers are small businesses, digital first brands and startups.

Backed by notable investors like Tiger Global, Peak XV Partners, Lightspeed, among others, the company has raised a funding of over $800 Mn to date. 

The development comes at a time when several new-age tech companies have opted for the confidential route to file their IPO papers with market regulator SEBI. Earlier this month, AvenuesAI’s (formerly Infibeam Ventures) subsidiary Rediff and dronetech startup Garuda Aerospace filed their DRHP with SEBI via confidential route.

While Paytm and MobiKwik are among the major fintech players which are listed on the exchanges, a number of other companies like PhonePe, Kissht, Moneyview, among others, from the segment are in the queue for public listing.

Razorpay’s AI Makeover

Amid rising advancements in AI, Razorpay, like other fintech platforms, has been rapidly adopting the technology. In March this year, it hosted its annual flagship event FTX, which saw participation from global AI leaders like OpenAI, Anthropic, Nvidia, Emergent, and ElevenLabs. 

During the event, Razorpay announced multiple AI-focused partnerships, including launching its agentic AI studio in partnership with Anthropic’s Claude, enabling use cases such as placing food orders and completing payments through integrations with ecommerce players like Swiggy and Zomato. It also announced partnerships with PVR Inox, Dermacore, BigBasket, LinkedIn, among others. 

The company is offering an agentic AI stack with majorly three solutions:

• Build Your Own Agent: Allows businesses to customise their agents
• Agent Studio: An agent marketplace for automating business operations
• Agentic Commerce: Integration with third-party apps to automate payments journeys.

On the financial front, Razorpay claimed its operating revenue surged 65% YoY to ₹3,783 Cr in FY25 from ₹2,296 Cr in the previous fiscal year. The company also incurred an ESOP expense of ₹1,209 Cr and one-time cost related to restructuring and tax payments linked to shifting its corporate domicile to India, resulting in it slipping into loss. However, the company did not disclose the exact loss figure for FY25.

The post Razorpay To Soon File Confidential DRHP To Raise $600-$700 Mn: Report appeared first on Inc42 Media.