Paytm targets $3-billion IPO, largest ever in India

Bengaluru: Paytm, India’s leading digital payments provider, is planning to raise about $3 billion (about Rs 21,800 crore) in an initial public offering (IPO) in India later this year, Bloomberg reported on Wednesday, in what would be the country’s largest public debut ever.

SoftBank- and Alibaba-backed Paytm, currently India’s most valued startup at $16 billion, is slated to have a board meeting on Friday where the proposal will be considered. Paytm is aiming at a valuation of $25-$30 billion, Bloomberg said in the report, citing a person familiar with the development.

If successful, the Paytm IPO would surpass Coal India’s offering tha raised Rs 15,000 crore in 2010 in the country’s biggest IPO so far. The float is expected to be a mix of new equity issuance as well as a share sale by existing investors. The company is in talks with multiple investment banks, but Morgan Stanley is a leading contender. Paytm is reportedly aiming to list by November and start the IPO work from next month or in July.

When contacted, a Paytm spokesperson declined to comment on the matter.

The company’s consolidated revenue grew by a little more than 1% in 2019-20 to Rs 3,280 crore, while it cut losses by 30% to Rs 2,942 crore, according to its annual report. Audited numbers for FY21 are yet to be made public. The company has been expanding into financial services verticals such as stock trading, mutual funds and insurance.