Paytm plans to raise $2.2 billion through IPO for investment

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Indian digital payments start-up Paytm is planning to raise 166 billion rupees ($2.22 billion) through an initial public offering (IPO) to invest in new ventures, partnerships, etc. In addition to an offer for sale by current shareholders worth an additional 83 billion rupees, Paytm will issue new shares worth 83 billion rupees. Paytm, which is about to enter the public markets, may herald the beginning of a new era for the Indian start-up ecosystem. Indian digital payments start-up Paytm intends to raise up to 166 billion rupees ($2.22 billion) through an initial public offering (IPO).

It planned to invest the money raised from the IPO in new ventures, partnerships, and acquisitions, as well as expand and fortify its payments ecosystem. About Paytm In addition to offering new shares valued at 83 billion rupees, Paytm’s current shareholders—Japan’sSoftBank, China’s Ant Group, and Berkshire Hathaway—will also make an additional 83 billion rupees of sales offers. Paytm, the Noida-headquartered company began as an online service in 2009 that let Indians top off their mobile plans and pay their bills.

After more than ten years, the start-up is now well-known in India’s digital payments market, where millions of people use its services to pay for everything from groceries and utilities to movie tickets and mobile phone recharges. In addition, Paytm is a fully licensed digital bank that has introduced wealth management, insurance, and cloud and business services. However, it has fierce competition from well-funded rivals like Google Pay, Walmart’s PhonePe, and Facebook’s WhatsApp messaging service, which enables users to send money through the app, for market share. According to Paytm, as of March 31, there were about 333 million users.

For the year that ended on March 31, One97 Communications, which owns Paytm, posted a loss of 16.96 billion rupees a slight improvement from the 28.42 billion rupees loss in the previous year. Revenue dipped nearly 15% to 28.02 billion rupees, according to the prospectus.

Also read: The tech names in Time’s 100 Most Influential People of 2024 list Also read: Top tech news stories today: April 19, 2024 The future of Indian tech start-ups A venture investor had earlier predicted that a number of big initial public offerings (IPOs) would occur in 2021, marking the “beginning of a new era for the Indian start-up ecosystem.” Other Indian tech start-ups are preparing to go public besides Paytm. While ride-hailing service Ola and e-commerce behemoth Flipkart are reportedly considering listing options, food delivery company Zomato filed for its initial public offering (IPO) earlier this year.