Razorpay has officially transitioned from a private to a public company, marking a critical step toward its anticipated IPO. The Bengaluru-based fintech unicorn renamed itself Razorpay Software Limited after receiving shareholder approval in late March. While the IPO isn’t imminent, the move aligns with its goal to list publicly in approximately two years, ensuring compliance with governance standards.
Reverse Flipping: A Costly but Necessary Shift
As part of its IPO preparations, Razorpay is relocating its legal domicile from the US to India—a process known as “reverse flipping.” The company merged its US entity with its Indian arm earlier this year, a move approved by regulatory authorities. Co-founder Shashank Kumar emphasized India’s importance, stating, “This is where all our customers and operations are.” However, the restructuring could incur a significant tax bill in the US.
Financial Growth and Regulatory Readiness
Razorpay’s recent financial performance shows a consolidated net profit surge, with operating revenue rising steadily. The company also secured a key regulatory license, allowing it to onboard new merchants after a temporary pause. With a robust payment volume and millions of businesses on its platform, Razorpay aims to achieve ambitious revenue targets by 2030.
IPO Timeline and Market Strategy
While earlier reports suggested a 2026 IPO target, updated statements indicate a 2027-28 timeline. Razorpay is prioritizing profitability and merchant expansion, with leadership highlighting the need for “predictable business metrics” before listing. The company has begun discussions with investment bankers and plans to leverage its recent growth in SME banking and lending verticals.
Fintech IPO Wave: Pine Labs, PhonePe Join the Race
Razorpay isn’t alone in its IPO ambitions. Competitors like Pine Labs aim for a late-2025 listing after relocating their headquarters to India, while others have paid substantial taxes to move operations domestically. PayU and Groww are also eyeing public debuts, signaling a broader trend of Indian fintechs consolidating operations for regulatory ease.
Why India? Regulatory and Market Advantages
Bringing headquarters back to India simplifies compliance for fintechs like Razorpay, which earns most of its revenue domestically. The shift also positions the company to attract local investors and capitalize on India’s booming digital payments sector, projected to reach unprecedented heights by 2026.