Paytm, the payments titan, led by Vijay Shekar Sharma and run by One97 Communications, has received market regulator- Securities and Exchange Board of India (Sebi’s) approval for its INR 16,600 crore (IPO) initial public offering.
In July this year, the Noida- based company filed its DRHP with the market regulator for raising INR 16,600 Cr. The IPO contains a new release of INR 8,300 Cr and an offer for sale (OFS) of another INR 8,300 Cr.
One97 Communication was launched in 2000 by Vijay Shekar Sharma, who founded Paytm in 2010. Paytm is one of the biggest digital payments firms in our country with its operations varying across digital payments such as UPI, credit and debit cards, wealth management via Paytm Money, banking services by Paytm Payments Bank and more.
At present Paytm parent — One97 Communications operates Paytm Payments Bank Limited, Paytm General Insurance Limited, Paytm Life Insurance Limited, Paytm Money Limited, Paytm E-Commerce Private Limited, Paytm Entertainment Limited, among other smaller entities. All these combine to provide Paytm with a solid acquisition channel for its core business of payments and fintech services.
As per the DRHP filing report, the fintech had closed INR 3,186 Cr revenue in FY21 compared to INR 3,540 Cr in FY20. In the past few years, the platform has narrowed down its losses to INR (4,235.5) Cr, INR (2,943.3) Cr and INR (1,704) Cr in FY19, FY20 and FY21, respectively.
According to sources, Paytm is seeking a $20 Bn – $22 Bn valuation for its IPO. Paytm was valued at $16 Bn in 2019, after it raised $1 Bn from Ant Financials, SoftBank Vision Fund. Earlier there were reports that Paytm will look at seeking a $25 Bn – $30 Bn valuation.