Razorpay flips back to India at a $150 million cost
29 May 2025, 05:00 PMThe development comes weeks after Razorpay officially restructured itself into a public limited company, a key step toward its anticipated IPO.
Arti Singh
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Fintech unicorn Razorpay has completed the reverse flip to India. The payments major has shifted its parent company's domicile from the United States to India.
The payment aggregator -- which took advantage of new government rules easing the reverse-flip process -- is estimated to have incurred around $400 million in tax outgo during the transition. A source aware of the details told The Head and Tale recently.
The source has now confirmed that the company has paid close to $150 million as "Razorpay was able to find more tax optimizations."
Confirming the development, Razorpay co-founder and managing director Shashank Kumar said, "Yes, we've officially completed our reverse flip, and we couldn't be more proud. This move marks a pivotal milestone in Razorpay's journey. It is more than a structural move; it's a powerful signal of belief. Belief in India's economic future, our regulatory ecosystem, and in the incredible potential of homegrown innovation. We started Razorpay with a dream to build for India, and today, we're doubling down on that dream by making India not just our largest market, but our global headquarters. The move reflects our deep-rooted confidence that India is no longer just a great place to build from - it's the best place to lead from."
The development comes weeks after Razorpay officially restructured itself into a public limited company, a key step toward its anticipated initial public offering (IPO). The payment aggregator got the approval of its members at an extraordinary general meeting held on March 27 to change its name to ‘Razorpay Software Limited’ from ‘Razorpay Software Private Limited’.
Although the Bengaluru-headquartered firm has no immediate IPO plans, it's aiming for a public listing in about two-three years.
Having raised more than $800 million through several funding rounds, Razorpay was last valued at approximately $7 billion.
In FY24, Razorpay reported a 24% jump in revenues for its payment gateway (PG) business. Despite facing over nine months ban on new merchant onboarding during the financial year, the fintech’s PG business generated revenue of Rs 2,068 crore. During this period, its total income stood at Rs 2,501 crore as compared to Rs 2,293 crore reported in FY23. It posted profit after tax of Rs 34 crore in FY24 from Rs 7 crore in FY23.
Razorpay resumed onboarding new merchants on December 22, 2023, following RBI’s payment aggregator (PA) authorization. The company claims it launched over 40 new solutions that enhanced service penetration among existing customers. Razorpay also claimed to reach an annualized total payment volume (TPV) of $180 billion.
The development aligns Razorpay with other Indian fintech companies like Paytm and MobiKwik that have already gone public.
Meanwhile, several other fintechs, including Pine Labs, PhonePe, Groww, Navi, OfBusiness gearing up for their IPOs in near future.
The author is Founder and Editor of The Head and Tale. She can be reached at
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