Paytm – An initial public offering by India’s most valuable startup, Paytm, will raise $2.2 billion. On Friday, it submitted draft papers to the country’s market regulator.
Firmly backed by Alibaba, Berkshire Hathaway, and SoftBank (PDF) will sell $1.1 billion worth of shares and offer $1.1 billion in sales.
With the cash infusion, the startup plans to expand its payments offerings by $577 million, pioneer new projects, and explore acquisition possibilities with $269 million.
Paytm, launched in 2009 to make payments with their smartphones, has expanded to offer a wide range of services. Today, it operates an e-commerce marketplace, a payments gateway, ticketing, and sells insurance and digital gold. Paytm is one of the market leaders across several categories.
Successful IPO of Paytm
The startup, formerly known as One97 Communications and valued at $16 billion last year. Has onboarded more than 21 million merchants. Amassed over 333 million users, of whom 114.3 million transact annually.
The Vijay Shekhar Sharma-led company has created a super-app geared toward digital payments. That provide consumers with innovative, intuitive products and services.
We provide a wide selection of payment options with the Paytm app. These include (i) Payment Instruments, which enable customers to make payments from digital wallets, sub-wallets, and banks. Continuing with the last point (i) principal third-party instruments, such as debit and credit cards and net banking, adds a chapter on “Buy-now-pay-later and wealth management accounts,”
The Pandemic has boosted India’s digital economy, and local stock exchanges show interest in consumer tech companies. In only a few hours, retail and anchor investors had fully subscribed to food delivery company Zomato’s IPO of $1.3 billion this week.
A lot is riding on Paytm’s IPO, one of the most celebrated startups in India and one that reported a consolidated loss of $233.6 million. It is for the financial year that ended in March this year, down from $404 million a year earlier.
The Sequoia-backed MobiKwik unit of Paytm is also seeking to raise about $250 million in an IPO this week. The firm raised $3.6 billion at a valuation of $37.6 billion earlier this week. At the same time, policy broker PolicyBazaar, make-up retailer Nykaa. Delivery platform Delhivery announced a $100 million investment from FedEx and hoped to list in three to four quarters.