Fintech unicorn Razorpay has formally become a public company, a major milestone on the way to an initial public offering (IPO). In its regulatory filing, the company got the nod from its members in an extraordinary general meeting on March 27 to modify its name from 'Razorpay Software Private Limited' to 'Razorpay Software Limited.'

While the startup does not have immediate plans for an IPO, this conversion is a preparatory step. Razorpay stated, “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,” as reported to Inc42.

This development was initially highlighted by Entrackr.

Razorpay's Move Towards Homecoming

As part of its IPO preparations, Razorpay is also relocating its headquarters from the US to India. The fintech venture said in its filing that the regional director of the ministry of corporate affairs in Hyderabad had given approval for the merger of Razorpay Inc with Razorpay India in February.

Established in 2014 by Harshil Mathur and Shashank Kumar, Razorpay is an omnichannel payments and banking platform. The startup has diversified over the years to cover SME payroll management, banking, lending, payments, and insurance, among others.

Headquartered in Bengaluru, Razorpay has raised more than $739 million in total funding to date, including prominent investors like Tiger Global, Y Combinator, GIC, Matrix Partners India, and Peak XV Partners.

Latest reports suggest that Razorpay is going through a major restructuring process with the intention of bringing its six Indian operations under Razorpay Software India. After this restructuring is complete, the company will be liable for a tax of $200 million to the US government.

Razorpay's consolidated net profit jumped over four times to INR 33.5 crore in the fiscal year 2023-24 (FY24) from INR 7.2 crore in the last fiscal. Operating revenue grew by 9% to INR 2,475 crore from INR 2,283 crore in FY23.

Fintech Startups Looking at Public Markets

Razorpay is not singular in its intent for an IPO; there are other fintech startups in the pipeline, ready for public listings. Pine Labs' CEO Amrish Rau announced a plan for an IPO in the second half of 2025. Ahead of its listing in the market, Pine Labs got a go-ahead from the NCLT to reverse its incorporation from Singapore to India.

In November, Dutch investor Prosus said it has plans to list PayU in 2025. Fintech behemoths PhonePe and Groww are also at different stages of their IPO planning. PhonePe recently remitted more than INR 8,000 crore in taxes as part of its reverse shift from Singapore, and Groww paid INR 1,360 crore in taxes to the US government for its return.

It should be noted that fintech firms Paytm and MobiKwik are already listed on the public bourses, with Paytm having gone public in 2021 and MobiKwik having done so last year.

Aside from their IPO plans, shifting headquarters back to India is a strategic choice for fintech startups since it simplifies regulatory compliance. Firms such as Razorpay and PayU derive much of their top-line from the Indian market.