Indian payments firm Paytm files for IPO with $2.2bn target
Indian digital payments firm Paytm is planning an initial public offering (IPO) with the aim of raising up to $2.2 billion.
According to draft papers submitted to the country’s market regulator by parent company One97 Communications last week, the company will issue new shares worth $1.1 billion and offer $1.1 billion worth of shares for sale.
JP Morgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are advising on the IPO.
It says it will use the funds to strengthen its payment network and explore the possibility of further acquisitions.
Launched in 2009, Paytm offers digital payment services, commerce and cloud services and financial services.
The fintech, which is backed by heavyweights such as SoftBank, Ant Financial and Warren Buffet’s Berkshire Hathaway, is currently one of the most valuable start-ups in India and boasts 333 million users and over 21.1 million merchants.
The firm raised a mammoth $1 billion in financing in a “Series G” funding round back in 2019.
IPOs appear to be a hot topic in the Indian tech scene at the moment. Zomato completed its $1.3 billion IPO last week, while Policybazaar, Ola and Flipkart are also plotting IPOs in the near future.
The news also follows the announcement last week that fellow Indian payments start-up MobiKwik is planning its own IPO with a target of $255 million.