Last Updated on 16/07/2021 by Riya
Paytm, one of India’s top companies, revealed in initial filings filed with the nation’s market regulatory body on Friday that it aims to collect up to $2.2 billion in a public offering. The company intends to raise the money by releasing $1.1 billion new shares and sells worth $1.1 billion existing shares as retail and anchor investors are expressing more interest in investing in consumer tech businesses due to the rising growth of e-commerce businesses.
The decision of raising $2.2 billion was made at a time when the company pledged to spend $577 million on growing its transactions operations and $269 million on new projects and acquisition possibilities. Paytm, which began in 2009 as a way for customers to initiate online transactions and top-up credit with mobile phones has currently over 333 million customers, 114.3 million of whom made the transaction through the app yearly, and it is believed that recently over 21 million new merchants have also been joined the app to made online business transactions.
Over the last few years Paytm once known as One97 Communications has grown to serve a broad array of services including payment gateway, e-commerce platform, ticketing service, selling insurance, and digital gold. According to Vijay Shekhar Sharma, “by creating Paytm app the company wanted to provide their customers unique and easy digital solutions to made transactions online.
The company decided to file IPO keeping in mind India’s driven digital economy due to the ongoing epidemic. Due to the ongoing pandemic, most of the transactions are made online which increases the use of Digital digital wallet amongst the people. Because of the increased use of digital transactions Paytm wants to scale up its operations to earn more profit. Furthermore, apart from Paytm, recently Indian meal delivery app Zomato had also raised $1.3 billion in IPO which is very appreciative for a company that suffered a huge loss due to the lockdown.