MUMBAI: Digital payments platform Easebuzz is preparing to raise $80–100 million in a pre-initial public offering (IPO) round, as the profitable fintech looks to set a valuation benchmark ahead of a potential public listing in the next 24-36 months, according to two people familiar with the matter.
The Pune-based company has appointed Avendus to manage the process, which is expected to launch mid-year and include both primary and secondary components. The round is likely to bring in a new lead investor and could value the company at a significant markup to the $200–250 million valuation it commanded in its April funding round last year, one of the people cited above said.
“The next capital raise is aimed at setting the valuation ahead of a listing over the next 24–36 months and will bring in a new investor to lead the round and take the company public. Easebuzz has already crossed $100 million in annualized recurring revenue and is profitable,” the second person said. Both spoke on the condition of anonymity.
The planned fundraise comes as Easebuzz scales its payments and software stack across sectors to position for the public markets, amid intensifying competition in India’s crowded fintech space.
“We are a well-capitalized and profitable organization, built on a disciplined and conservative approach to managing growth and expenses. Following our recent fundraise of ₹240 crore, we are not in immediate need of additional capital,” a spokesperson for the company told Mint in an emailed statement. “Going forward, we do see a pathway to the public markets; however, it would be premature to comment on timelines or potential valuations at this stage.”
Avendus declined to comment.
Revenue growth
In FY25, Easebuzz processed gross transaction value of over $30 billion, with revenue doubling to ₹650 crore from ₹294 crore a year earlier. It posted a net profit of ₹18.77 crore, compared with ₹37.7 lakh in FY24, according to a report by Entrackr.
The company competes with Razorpay, Cashfree Payments, BillDesk, Airpay and PayU in India’s digital payments market.
Easebuzz has expanded beyond online payments into offline offerings such as point-of-sale (POS) devices and UPI QR-based soundbox solutions. Last year, it received authorization from the Reserve Bank of India to operate as a full-service Payment Aggregator (PA), allowing it to offer services across online, offline and cross-border payments.
The development comes nearly a year after the company raised $30 million in a Series A round led by Bessemer Venture Partners in April last year, with participation from existing investors 8i Ventures and Varanium Capital. The round also provided an exit to Guild Capital, one of its early backers.
Founded in 2014, Easebuzz provides sector-focused SaaS products embedded with payments infrastructure to more than 200,000 businesses across industries including education, real estate, e-commerce, BFSI, government and travel. Its clients include Zepto, BigBasket, Bajaj FinServ, IRCTC, Star Health Insurance, Symbiosis University and DLF. The company has also partnered with NPCI Bharat BillPay to launch an interoperable B2B payments platform.
India’s digital payments market is projected to expand more than threefold in volume, from 159 billion transactions in FY24 to 481 billion by FY29, while the value of transactions is expected to more than double from ₹265 trillion to ₹593 trillion over the same period, according to a PwC report.