Indian payment group Paytm plans to raise up to $ 3 billion in the list

The Indian payment group Paytm convened a meeting of shareholders next month to approve the initial offer, which is presented as the largest country, and plans to raise up to $ 3 billion.

The group, backed by China’s Ant Group and Japan’s SoftBank, has been named by JPMorgan, Morgan Stanley, Goldman Sachs and India’s ICICI Securities, according to experts. The offer is aimed at Paytm’s $ 29 billion valuation.

From digital payments to banking transactions, Paytm has launched 2019. Estimated at $ 16 billion in its recent funding phase, it has long been a success story for India’s emerging technology sector.

But it was ousted by edtech as India’s most expensive launch this month Budget:,

It faces stiff competition from online competitors for online payments, such as Google Pay և PhonePe, a service provided by Walmart, India’s Flipkart e-commerce platform.

“Five years ago, Paytm was in charge of India, it was the driver,” said Neil Shah, an analyst at Counterpoint Technology Research. “It simply came to our notice then.

“It’s the right time to make an IPO, as competition is growing rapidly, և Paytm preference is declining. “The IPO can change their competition,” he said.

As India’s tech-savvy generation matures, several other unicorns are considering listing this year.

Food Supply Company Zomato presented its draft prospectus in April, trying to take advantage of the sharp rise in online shipping in India during the coronavirus epidemic.

Insurance aggregator Policybazaar N beauty e-commerce website Nykaa also reported that they are discussing lists like Walmart’s Flipkart.

Co-founder and CEO Vijay Shekhar Sharma, Paytm was one of the first to target digital payments, with about 150 million monthly active users.

But Paytm is struggling to make a profit, despite reducing its losses for two years in a row.

Last year, Paytm reported a loss of 17 billion rubles ($ 230 million) compared to 29 billion rubles a year earlier.

“We see that many of these start-ups are looking at the Indian list, in part because of high global liquidity,” said Girkul Rajan, a capital markets lawyer at Cyril Amarchand Mangaldas.

He said many companies consider domestic listings regulated by the Indian Stock Exchange Board to be a “more viable option” compared to foreign bidding or specialty companies.

“Sebi regulations allow non-profit companies to get the IPO, and Indian unicorns are getting a little closer to the US market.

Paytm Sharma has not been a stranger to controversy over the years. He was mixed up blackmail scandal In 2018, after he accused the head of his public relations department of trying to extort $ 2.7 million.

The executive director sharply criticized “arbitrary powers և influenceSilicon Valley firms in India և supported New Delhi’s ban on Chinese programs, even though its largest investor is the Chinese.

He once tweeted that it “time for the best Indian entrepreneurs to come forward for the Indians ել to build the best. ”

Additional report by Hudson Lockett in Hong Kong

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