Payments company Razorpay gets Sebi nod for IPO, issue estimated at Rs 5,000-6,000 crore

Razorpay Software Ltd has secured Sebi’s approval to launch an initial public offering, an update with the markets regulator showed on Friday. Sebi issued its final observations to the company on November 3, after examining its draft documents.

Razorpay filed those documents via the confidential route in June. The route lets a company submit draft offer documents for review without immediately disclosing sensitive business information to the public.

The company did not disclose the size of the proposed issue. People familiar with the matter estimate it at Rs 5,000-6,000 crore.

Sebi’s observations mark an important step in the IPO process. They allow the company to proceed with preparations for its public issue, subject to applicable regulatory requirements.

Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay offers payment acceptance, banking, payouts, payroll, lending and other financial services through an integrated platform. It serves millions of businesses across India, from startups and small and medium enterprises to large corporates.

The company attained unicorn status in 2020 and has since expanded beyond payments into a broader financial services ecosystem for businesses. Its offerings enable merchants to manage collections, payouts, payroll, cash flows and access to capital through a single platform.

Earlier this month, Razorpay received its final IFSCA licence to operate as a payment service provider in GIFT City.

The company is backed by investors like Peak XV Partners, GIC, Tiger Global, Ribbit Capital, Lone Pine Capital, Alkeon Capital and TCV.

Sembcorp Green Infra, a renewable energy independent power producer, also secured Sebi’s approval in the same update, with final observations issued on November 13. Earlier this month, Nasdaq-listed travel booking platform MakeMyTrip’s India subsidiary received Sebi’s approval to launch its maiden public offering.