paytm: Paytm – India’s biggest IPO set to raise $2.2 bn, BFSI News, ET BFSI



India’s biggest IPO on the anvil by Paytm filed its papers with Securities and Exchange Board of India (SEBI) to raise Rs 16,600 crore ($2.2 billion).

Paytm was founded by Vijay Shekhar Sharma back in 2010 as a mobile recharge and prepaid platform, Shamra holds 10 percent of the company. Paytm is also backed by the Ant Group which holds nearly 30 percent stake along with Masayoshi Son’s Softbank Vision Fund, Berkshire Hathaway and other high-profile investors.

Paytm will issue fresh shares worth Rs 83 billion and sell an equal amount of shares via a sale offer. As per the DRHP filed by Paytm, there are almost 21 million touchpoints for Paytm acceptance and has 333 million customers. The payment gaint processes transactions worth over Rs 4 trillion.

However, it has been making losses and is unsure of when it will make a profit as per the DRHP. Paytm reported net loss of Rs 17 billion and revenues of Rs 31.86 billion in FY21. The fintech giant also reported negative cash flows for the last three years mainly due to operational losses.

The IPO is expected to launch in the coming months subject to regulatory approvals.

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