Paytm, which is perhaps one of the most valuable startups in India, is planning to raise up to $2.2 billion in an initial public offering, according to the draft papers that were submitted to the country’s market regulator on Friday.
The company is headquartered in Noida and is backed up by Alibaba, Berkshire Hathaway, and Softbank to name a few. The company said that it will issue new shares worth $1.1 billion and offer sales worth $1.1 billion.
It is planning to make the use of a fresh capital of 577 million to further broaden its payments services offering and about $269 million to enter into new initiatives and explore acquisition opportunities, it said.
Paytm was launched in 2009 to help uses make easy digital payments straight from their phones. In the last decade, it has expanded to a wide range of services including payments gateway e-commerce marketplace, ticket booking, and also sells insurance and digital gold. In fact, Paytm is leading in many of the categories where it operates as a true market leader.
The startup, formerly known as One97 Communications was last valued at $16 billion and has amassed over 333 million users. Out of these, 114.3 million transact annually and it has also onboarded over 21 million merchants around the country,
“We have created a payments-led super-app, through which we offer our consumers innovative and intuitive digital products and services,” the Vijay Shekhar Sharma-led describes itself.
“We offer our consumers a wide selection of payment options on the Paytm app, which include (i) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts, and (ii) major third-party instruments, such as debit and credit cards and net banking,”
Paytm is one of the key contributors that has helped fuel India’s digital economy forward. In a time of the pandemic, the country’s stock exchanges are growing their appetite for consumer tech stocks.
Previously this week, food delivery giant Zomato also filed for a $1.3 billion IPO that only took a few hours to be fully subscribed by retail and anchor investors.