Another startup from India files for an initial public offering. The country’s digital payments giant, Paytm, has filed for an IPO. The company targets to raise up to $2.2 billion through its market debut.
A reportage from Tech Crunch earlier this month revealed that Paytm was looking for a way to raise a pre-IPO round with the help of Goldman Sachs and Fidelity. Following the news, Paytm later said that the company might raise up to 268 million in the round.
Meanwhile, Paytm will issue new shares worth $1.1 billion through its IPO. Additionally, the company will offer sales worth $1.1 billion, Tech Crunch reports.
Paytm: the journey to become a super-app
Ever since its launch in 2009, Paytm has managed to expand greatly in just a little over a decade. Paytm currently operates a payments gateway, e-commerce marketplace, ticket booking, and even insurance and digital gold selling. In several of the mentioned categories, Paytm has become a market leader as well as one of India’s most valuable startups.
Paytm further released its future plans on fresh capital allocation. The competition of PhonePe and Google Pay will be administering $577 million for its payment services offering expansion. Furthermore, about $269 million will be used to develop new initiatives and explore acquisition opportunities.
The latest valuation for Paytm, formally known as One97 Communications, was $16 billion. The service has amassed more than 333 million users. Among them, 114.3 million users transact annually through the platform. Paytm also records over 21 million merchants, the company said in the papers today.
Paytm is quite ambitious in growing into a super app. The company describes itself as having “created a payments-led superapp, through which we offer our consumers innovative and intuitive digital products and services,” Tech Crunch quotes.
Paytm’s upcoming IPO could be a worthwhile event to note. The pandemic has fuelled India’s digital economy, contributing to a stronger appetite for consumer tech stocks in local stock exchanges.
This was also shown through Zomato’s fully subscribed $1.3 billion IPO that took place this week. Retail and anchor investors emptied out stocks for India’s food delivery giant in just a few hours.