Fintech giant Razorpay converts into a public limited company ahead of IPO

Digital payments company Razorpay has secured board approval to convert into a public limited company, marking a critical step in its preparation for an eventual stock market debut in India.

The development comes amid the fintech giant's broader efforts to redomicile its parent entity from the United States back 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,” Entrackr reported, citing a Razorpay spokesperson.

Razorpay's offerings

Founded in 2014, Razorpay has been among India's most closely watched fintech startups. The Bengaluru-headquartered startup provides a suite of payment and banking solutions tailored for businesses, and processes roughly $180 billion in transactions annually.

Its payment aggregator licence, granted by the Reserve Bank of India in December 2023, further cemented its position in the domestic digital payments landscape.

On the path to the IPO

Razorpay's conversion into a public company is seen as a key step in its IPO roadmap, which co-founder and CEO Harshil Mathur earlier said could materialise in about two years. In an interview with The Economic Times last December, Mathur noted that the company aimed to achieve full profitability within an 18-month window.

For the fiscal year ending March 2024 (FY24), Razorpay's core payments business reported revenue of Rs 2,501 crore and a net profit of Rs 34 crore.

Funding and investors

Over the years, Razorpay has raised approximately $740 million from a roster of marquee global 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 in its 2021 fundraising round.