Paytm is edging close to its public debut as report suggests that the Bengaluru based digital payments startup has filed for an initial public offering (IPO) of up to 166 billion rupees ($2.23 billion), draft papers submitted to the country's market.
The startup, which is also backed by investors including Berkshire Hathaway Inc, China's Ant Group, said the IPO would include an issue of new shares worth Rs 83 billion and an offer for sale worth Rs 83 billion. The company will be looking to use the IPO proceeds to strengthen its payment ecosystem and new business initiatives and acquisitions.
Paytm has been in the news lately. Recently, the Noida based startup, a subsidiary of One97 Communications Ltd, refreshed its board. The company replaced 11 Chinese on its board with US and Indian nationals ahead of its IPO. This included big names from Alipay, Ant financials and Alibaba.
Founded ten years ago, Paytm's popularity grew after ride-hailing firm Uber listed it as a quick payment option.
Paytm's $2.23 billion IPO will place it on the list of India's biggest IPOs, joining the likes of state-run miner coal and Reliance Power. JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC bank are the booking running managers for the IPO.
Paytm is not the only startup looking to go public. Startups like Zomato - a food delivery startup, Flipkart- e-Commerce, Ola - a ride-hailing service, and Nykaa - a beauty brand have all spelt out plans to go public.
India in focus
GDP: $2.262 trillion compared to $2.871 trillion in 2019
Population: 1.38 billion in 2020 compared to 1.366 billion in 2019
GDP per capita: $1,900 in 2020 compared to $2,100 in 2019