IPO on the cards, but a couple of years away: Razorpay’s Harshil Mathur

The last couple of months, the stock market has seen the entry of many new-age internet consumer companies such as , , and many others waiting to join the bandwagon. Some of them have had a phenomenal debut, while others struggled. For Razorpay’s CEO and co-founder Harshil Mathur, this only shows that the Indian investors are smart.

“It just goes on to show that the Indian investors are smart to understand what a company does and what the company’s fundamentals are. I think, if anything else, that just reaffirms my faith in the public markets of India that the investors know what they’re spending their money on,” he said at ASCENT eConclave 2021.

He further mentions that an IPO is surely in Razorpay’s plans but it is still a couple of years away. Mathur wants to first scale up the banking and lending arm of the company.

“If you want to go out and raise money in the public markets, it’s better to be a full-fledged financial ecosystem company, rather than just a payments company, which is a core part of our business today,” he said.

In the meantime, Mathur said he is taking notes of what is happening in the public markets and that is what he will advise other entrepreneurs out there too to learn how they should position their business if they want to take the company public at some point of time.

Paytm made its IPO debut a few weeks ago has done poorly on the bourses, putting a spanner on IPO-bound fintechs. While Nykaa and Zomato’s debut saw success, the overvaluations of companies like Paytm displays an uncertain market trend.

Razorpay is reportedly in advanced talks with US-based tech investor TCV to raise $270 million which could double the valuation of the former company to $5.5-6 billion.

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