Markets: India’s Paytm Files For $2.2B IPO

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Paytm, India’s foremost fintech startup, has filed for a big IPO on the country’s domestic exchanges. According to draft papers filed with India’s market regulator on Friday, the company is planning to raise up to 166 billion rupees ($2.2bn) in an initial public offering.

Half of the money Paytm plans to raise from its IPO will be from selling new shares to add to the company’s coffers while the other half will be from existing shareholders selling stakes. 
  • Paytm’s major shareholders include SoftBank (18.7%), China’s Ant Group (30.3%), Elevation Capital (17.65%), and Warren Buffett’s Berkshire Hathaway. With over $4bn raised, Paytm is one of India’s biggest-funded startups. It was valued at $16bn from its last funding round.
  • Another major Paytm shareholder is founder Vijay Shekhar Sharma with a roughly 15% stake.
  • According to the draft papers, One97 Communications, Paytm’s parent firm, has a solid business bringing in solid revenues, though the company is racking up significant losses. It brought in the equivalent of $371mn in revenue last year and posted a net loss of $225mn.
  • Paytm reports having 114 million people using its digital payment service each year. At the core of the company’s payment services is a mobile wallet that’s used to keep cash and pay bills at many supporting outlets, such as for Uber rides.
  • With the amount it’s seeking to raise, Paytm’s IPO will be the biggest India has seen in at least a decade. Rumors have it that the company is aiming for a valuation in the band of $24-30bn in its public market debut.

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