Fintech unicorn Razorpay has taken a major step towards its much-anticipated initial public offering (IPO) by officially converting into a public company. This transition marks a pivotal moment in the startup’s growth journey and positions it for enhanced governance and regulatory alignment ahead of going public.
From Private to Public: Razorpay Software Limited
According to recent regulatory filings, Razorpay received shareholder approval during an extraordinary general meeting (EGM) held on March 27, 2024, to change its legal status from a private limited entity to a public company. With this move, the fintech giant has changed its name from Razorpay Software Private Limited to Razorpay Software Limited.
The conversion is a procedural milestone that signals the startup’s intent to redomicile in India and prepare for a public listing, expected in the next two years.
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Statement from Razorpay
In a statement to Inc42, Razorpay said, “As part of our redomiciling to India, we’re initiating the process to become a public company well before our IPO in approximately two years, in order to align with best governance practices and build early readiness.”
This move reflects the company’s focus on transparency, regulatory compliance, and investor confidence, all of which are crucial for a successful IPO. It also aligns with a growing trend among Indian startups choosing to go public domestically rather than listing overseas.
Why Redomiciling Matters
Razorpay was originally incorporated in the U.S. through a parent holding company but is now actively working to shift its base back to India—a move known as redomiciling. This strategy is gaining popularity among Indian startups looking to tap into domestic capital markets, access local investors, and benefit from government incentives aimed at bolstering the startup ecosystem.
Redomiciling also simplifies regulatory oversight and removes complications related to cross-border taxation and compliance, particularly for fintech companies operating in highly regulated financial sectors.
Razorpay’s Growth Journey
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay started as a payment gateway provider and has since evolved into a full-stack financial services and neo-banking platform for businesses. The company offers services ranging from payment processing to payroll, lending, and banking services tailored for startups and SMEs.
Razorpay became a unicorn in 2020 and has raised over $740 million from global investors including Tiger Global, Sequoia Capital, GIC, and Y Combinator. The company has consistently maintained a strong growth trajectory and is considered one of India’s most promising fintech players.
What’s Next?
The conversion to a public company brings Razorpay one step closer to its IPO, which is tentatively planned for 2026. Over the next two years, the company will focus on strengthening internal processes, improving compliance frameworks, and scaling its product offerings to make a compelling case to public investors.
Razorpay’s early move toward public readiness reflects a mature and strategic approach to its growth journey—positioning itself as a leader in India’s booming fintech ecosystem.
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