Razorpay Moves Closer to Public Listing with SEBI Approval for INR 6,000 Crore IPO
SEBI has approved Razorpay’s IPO proposal of Rs 5,000-6,000 crore. The company is eyeing a valuation of about $5 billion. The fintech, which was established in 2014, has moved beyond payment processing into banking, payroll, finance, and commercial financial services.
Razorpay, a fintech company, has received a green light from SEBI, the market regulator, for its planned IPO of INR 5,000-6,000 crore. Through the IPO, the firm hopes to reach a valuation of about $5 billion. This comes after Razorpay began the process to access public markets in June when it submitted its preliminary offering papers to SEBI through the secret method.
In 2014, Harshil Mathur and Shashank Kumar established Razorpay, an integrated platform that provides a range of financial services, including payment acceptance, banking, payments, payroll, financing, and more. From sole proprietorships to multinational conglomerates, the company's clientele includes millions of businesses in India.
Razorpay Expanding its Network
After becoming a unicorn in 2020, Razorpay branched out beyond payments to provide a full suite of financial services to companies. Through its services, businesses are able to centralise the management of their cash flow, payroll, collections, payouts, and access to capital. Among the investors that have put their money into the business are Peak XV Partners, Alkeon Capital, Tiger Global, Ribbit Capital, Lone Pine Capital, and TCV.
Companies can send SEBI draft offer documents for assessment using the confidential filing procedure so that critical company information is not immediately made public. After formally pausing the process in March 2026, rival fintech firm PhonePe's IPO is currently on hold. Geopolitical tensions in West Asia and unpredictable market conditions have prompted this decision. At a valuation of $9–10.5 billion, the company aimed to raise more than $1 billion.
Razorpay Builds AI-Powered Payments Model
With four billion transactions as its training data, Razorpay has developed an AI payment foundation model. Consequently, as the digital payments ecosystem in India grows, it aims to enhance payment success rates, fraud detection, and customisation at checkout. The model analyses payment flows between merchants, banks, instruments, and gateways using over 3,000 signals for every transaction.
The model was constructed with the help of NVIDIA and AWS. An eightfold boost in international card fraud detection and an 8-10% improvement in payment success rates were observed in early tests over 1.5 million transactions and more than 51,000 firms, according to Razorpay. There was a fivefold improvement in the system's ability to detect suspicious or contested transactions.
According to Razorpay's co-founder and CEO Harshil Mathur, there is a single basic architecture that can handle all of these scenarios: the payment foundation model. Thus, its nature is multifaceted as opposed to the more conventional machine-learning models that were created for specific use cases, including detecting fraud or ensuring successful payments. He went on to say that the foundation model can take in data from any and all payment systems and apply it to other scenarios.
