Paytm, India’s largest company, boarded the board on May 28 to discuss the first public proposal for $ 3 billion. However, according to the source, the IPO will be launched later this year but the company is not yet ready to announce the same yet.
One97 Communications India Ltd, which manages Paytm service, is likely to visit the IPO at a double rate. The company retained an estimated $ 16 billion while collecting $ 1 billion from Softbank and Ant Financial in 2019.
“The IPO has come up with negotiations,” the source said.
If it passes, it may be one of India’s first major public offerings (IPOs) in India.
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The company plans to list it in November, Bloomberg reported earlier. The Bloomberg report also said that Paytm is in the process of finalizing the banks on the issue, and Morgan Stanley may be a favorite.
The company, which has been dominating the payment market in India, started out as a payment, the total mobile renewal fund in 2010. Launched a mobile wallet in 2014.
Over time, Paytm has been trying to gain market share across the range of financial services by establishing joint ventures, asset management, stock trading and insurance services. It also applied for a New Umbrella Entity (NUE) license, as part of an organization that includes Ola, IndusInd Bank, Zeta, Suryoday Small Finance, among others. It also applied for a standard insurance license.
In the year FY20, it sent in revenue of Rs 3,280 crore while its loss was reduced by 30% to Rs2,942 crore. According to Bernstein’s note, Paytm’s revenue base is likely to double in the 2023 financial year to $ 1 billion with unpaid revenue contributing 33%.
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The company has more than 350 million users installed in addition to the 20 million vendors on its platform.
With the exception of Paytm, next year, at least 3-4 companies such as Zomato, Nykaa, Delhivery, and Polybazaar are expected to emerge, prompting a new wave of funding given that the initial start shows the way out for the investor.
