Well-known digital payment giant Paytm has now appointed Goldman Sachs and JP Morgan as the merchant banker for its upcoming initial public offerings (IPO). However, the fintech startup is now looking out to file its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) in the month of July and expected to make its debut in the public market by the month of November 2021.
Further, the company is now looking out to appoint merchant bankers and advisers like Morgan Stanley and Citigroup Inc for the IPO. Well, the company gas planned to raise Rs. 21,800 crore or $3 billion through this public offering, at a valuation of $25 billion to $30 billion. Thus, this could be the largest IPO in India, surpassing Coal India Ltd’s offerings for raising Rs. 15,000 crore ($2 billion at current conversion rate) in 2010.
Currently, Paytm has now valued at $16 billion, after raising around $! Billion in the month of November 2019 from T Rowe Price, Ant Group, and Softbank Vision Fund. However, the round catapulted Paytm to the status of the highly valued startup in India and it was currently overtaken by Byjus which has raised around $350 million at a valuation of $16.5 billion. Overall, Paytm has now raised almost $3.2 billion to date from the investors like Berkshire Hathway, Alibaba Group, and many more.
One97 Communication was introduced in 2000 by Vijay Shekhar Sharma who has launched Paytm in the year 2010. Well, Paytm has now become one of the biggest digital payment companies in India with offerings across several digital modes of payments like unified payments interface (UPI, credit and debit cards payments. Additionally, it provides wealth management solutions through Paytm Money and banking services through Paytm Payments Banks.
Currently, Paytm mentioned that it is in talks with BillDesk, PayU, and publicly-listed Infibeam Avenues for a possible acquisition merger or investments. On the other hand, Paytm has now denied the report, as a source as per the ET which the talk is still in the initial stage. It is to be noted that Paytm even has a payment gateway in which the above-mentioned platforms have specialized businesses.
On the other hand, Noida-based company has now acquired around 7% stake in QR code-based payments business PayPay Japan. PayPay is basically a cashless payment service that is now run by a joint venture lies between Softbank and Yahoo Japan. It is almost 40 million users and facilities 2billion transactions annually. Moreover, Paytm is now a technology partner of the Japan-based fintech company.
Well, Paytm has reported a marginal drop in its revenue in the financial year 2020, because its revenues have dipped from Rs. 3,391 crore in FY19 to Rs. 3,350 crore. Also, it has reduced its net loss almost by 28% from Rs. 3,954 crore t 2,833 crore.
This Indian startup ecosystem is all set to give to see some of the highest-profile IPOs in this year. Also, food aggregator like Zomato and auto classified platform CarTrade has filed their DRHPs, on the other side insurtech platform PolicyBazar fashion and logistics icon Delhivery will be doing it soon. Early in this year EaseMyTrip and Nazara Technologies have made their debut in the public market.