Paytm, PhonePe, Google Pay (Gpay) and Bhim UPI QR Codes (Standee) are Saved outdoors for Cashless funds at a medical retailer in Gurugram on the outskirts of New Delhi, India on 16 Might 2020.
Nasir Kachroo | NurPhoto | Getty Photos
Indian digital funds start-up Paytm is planning to lift as much as 166 billion rupees ($2.22 billion) in an preliminary public providing, in line with draft papers submitted to the nation’s market regulator on Friday.
Paytm will challenge new shares value 83 billion rupees and a proposal on the market value one other 83 billion rupees by current shareholders, which embody Japan’s SoftBank, China’s Ant Group and Berkshire Hathaway.
Additionally it is in talks to doubtlessly undertake a pre-IPO placement of 20 billion rupees, which would cut back the dimensions of latest shares issued.
The Noida-headquartered firm stated it could use proceeds from the IPO to develop and strengthen its funds ecosystem, in addition to put money into new enterprise initiatives, acquisitions and partnerships.
Paytm began in 2009 as a platform that allowed Indians to pay their payments and top-up their cell plans. Greater than a decade later, the start-up has turn into a ubiquitous identify in India’s digital funds area as hundreds of thousands use the service to pay for issues together with utility payments, groceries, recharging cell connections and shopping for film tickets. Paytm can be a absolutely licensed digital financial institution and has launched insurance coverage, wealth administration in addition to cloud and business providers.
However, it faces stiff competitors for market share from deep-pocketed rivals reminiscent of Google Pay, Walmart’s PhonePe and Fb’s WhatsApp messaging service, which permits customers to ship cash by way of the app. Paytm stated it had round 333 million customers as of March 31.
For the yr that ended on March 31, One97 Communications, which owns Paytm, posted a lack of 16.96 billion rupees — a slight enchancment from the 28.42 billion rupees loss within the earlier yr. Income dipped almost 15% to 28.02 billion rupees, in line with the prospectus.
Paytm shouldn’t be the one Indian tech start-up that’s about to enter the general public markets. Meals supply agency Zomato filed for its IPO earlier this yr, whereas stories say ride-hailing agency Ola and e-commerce large Flipkart are exploring itemizing choices.
One enterprise investor beforehand stated that 2021 would “herald the start of a brand new period for the Indian start-up ecosystem,” with quite a few vital IPOs to come back.