Razorpay to redomicile to India, targets domestic IPO within two years
Razorpay plans to shift its domicile back to India by FY25 and pursue a domestic listing within two years, contingent on reaching profitability across verticals. Its payment rails business is already profitable, processing $150 billion annualised, with the RBI ban now lifted.
What happened
Razorpay plans to shift domicile back to India by FY25 and target a domestic IPO within two years after reaching profitability across verticals. Payment rails
Key facts
- two years to profitability
- 70% revenue from online
- 60% POS growth FY23
- 40% TPV growth Apr-Oct 2023
- $150 billion annualised payment value
- 10,000 merchants onboarded
- $741.5 million raised
- $375 million Dec 2021 round
- $7.5 billion valuation
Why this matters
The redomicile-then-IPO trajectory and lifted regulatory overhang narrow the M&A window, suggesting any partnership or acquisition approach should move before the listing locks in independent valuation expectations.
What to watch
- NCLT/tax authority approval of redomicile structure and associated tax liability
- Quarterly disclosure of vertical-level profitability beyond payment rails
- RBI policy on MDR, PA/PG licensing renewals, and any new compliance directives
- TPV growth rate sustaining above 30% in FY24-25 prints
- SEBI draft prospectus (DRHP) filing as the definitive IPO trigger
- Razorpay accelerates reverse-flip tax settlement and ESOP restructuring ahead of FY25 deadline
- Cross-sell push into lending, payroll and neobanking to lift non-payments verticals to profitability
- Peers (PhonePe, Cashfree, Pine Labs) signal own domestic listing timelines to anchor valuation benchmarks
- Strategic merchant acquisition and enterprise deals to defend TPV growth momentum