28th May, 2021
Paytm, India’s top digital payments company is contemplating an initial public offering (IPO) in India later this year to generate nearly $3 billion (about Rs 21,800 crore).
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It is said that the board meeting is on Friday, where the proposal of the offering will be considered. Paytm is currently in India the largest and most valued startup company which is worth $16 Billion. Alibaba and Soft-Bank are supporting Paytm and the company is aiming at a valuation growth of $25-$30 Billion as per the reports.
If the Paytm IPO is successful, it will exceed Coal India’s IPO in 2010, which raised Rs 15,000 crore in the country’s largest IPO to date. The float is likely to be a combination of fresh stock issuance and existing investor share sales. Morgan Stanley is a prominent candidate. The business is in negotiations with several investment banks. Paytm is apparently planning to go public in November and the work is expected to begin from next month or in July.
No comments have been made yet by Paytm.
The company made some losses by 30% to Rs.2,942 crores while the company’s total revenue increased by a little more than 1% in 2019-20 to Rs.3,280 crores. Audited numbers for FY21 are on hold to be announced publicly. The business has been diversifying into financial services such as trading, mutual funds, and insurance.
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Vijay Shekhar, the company’s CEO from last year has focused on increasing income and monetising its other services. The company was started initially as an offline payment wallet and now has stepped into banking, credit cards, financial services, wealth management, and UPI plus services.
A note issued on Thursday by the investment research firm Bernstein said it is expected that Paytm will double its revenue to $1 Billion by the year 2023, with one-third coming from non-payment businesses. Paytm has made a strong start in its loan sector for customers and merchants, according to the report, which will be important in the future.
Knowing the fact that there are plenty of other digital payment providers in India but Paytm is the biggest merchant share among all. According to numbers recently published on a corporate site, Paytm has over 20 million merchant partners and its consumers conduct an average of 1.4 billion monthly transactions.