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