Razorpay may opt for confidential IPO filing; valuation seen around $5 billion: Report

Fintech major Razorpay is likely to pursue a confidential filing route for its initial public offering (IPO), with its valuation pegged at around $5 billion, according to a report by The Economic Times.

The company is simultaneously sharpening its focus on Artificial Intelligence (AI) to expand beyond its core payments business, with the launch of a new agentic platform aimed at transforming how businesses manage financial operations.

Razorpay co-founder and CEO Harshil Mathur said the company's broader ambition is to evolve from a payments provider into a comprehensive financial infrastructure platform for businesses.

"The idea is to move from being just a payments provider to becoming a financial operating system for businesses. We want to build an entire layer of business logic on Razorpay so that business management can run on the platform, not just payments," Mathur said.

The newly launched platform introduces AI-powered agents capable of automating operational tasks linked to payments, including reconciliation, dispute resolution, customer follow-ups, and transaction monitoring. Launch partners for the platform include Swiggy, Zomato, Zepto, PVR INOX, and mamaearth, among others.

According to Mathur, while AI agents are being developed across industries, integrating them directly into payment workflows creates a distinct layer of utility for businesses.

"Agentic platforms exist independently, but nobody has built them directly on top of payments infrastructure," he said.

Razorpay expects the platform to have a significant impact on small and medium enterprises (SMEs), which often lack dedicated operations teams to handle payment-related processes. Tasks such as tracking failed payments, reconciling transactions, and managing disputes typically require manual intervention, making them ideal candidates for automation.

The company currently processes roughly one billion transactions every quarter, translating to a total payment volume (TPV) of about $45 billion. As AI adoption accelerates, Razorpay is positioning itself to embed agent-driven automation deeper into the financial workflows of businesses operating on its platform.