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According to a Bloomberg report, Fintech Decacorn Paytm is aiming to raise $3 Billion (≈INR 22000 crores) in IPO. The report quoted an inside official who states that this could be the biggest IPO in India following Coal India IPO from 2010. The startup plans to list in India around November, perhaps during Diwali. With this IPO, the company is targeting a valuation of around $25 billion to $30 billion.
The insider also suggested that the company will meet on Friday to discuss the IPO filings. If the company aims for Diwali IPO, it could file for listing in June-July. Paytm could raise a mix of new and existing shares to meet regulatory obligations in India. The country’s regulations require that 10% of shares are floated within two years and 25% within five years.
About Paytm
Paytm, formally called One97 Communications Ltd is India's largest digital payments provider. The company's major investors include Berkshire Hathaway Inc. SoftBank Group Corp. and Ant Group Co. Banks shortlisted to run the Paytm IPO include Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co. Further, CEO Vijay Shekhar Sharma has been focusing on ramping up revenue and monetizing its services over the past year.
Recently, Paytm also became one of a host of companies vying for an NUE licence for digital payments from the RBI. The company leads a consortium that includes several other cohorts. Some names include IndusInd Bank, Ola Financial Services, Suryoday Small Finance Bank, Zeta Pay, Centrum Finance, and ATM services provider EPS.
Read more: The RBI’s NUE Groove To Digitise All Payments Under One Roof
It has expanded beyond digital payments into banking, credit cards, financial services, wealth management and digital wallets. It also supports India’s financial payments backbone, the Unified Payments Interface or UPI. Paytm faces stiff competition from global players PhonePe, Google Pay, Amazon Pay and now, WhatsApp Pay too. Still, it has the biggest market share of India’s merchant payments.