Paytm, one of India’s largest startups, has applied to the regulatory body to raise $ 2.2 billion (about Rs 16,640 crore) from IPO (initial public offering). If the regulatory body approves it, Paytm will probably be the largest digital company to raise money in the startup space.
Paytm has said that the amount of this IPO includes new shares of the company, which is worth Rs 8300 crore. Paytm’s investors include Workshire Hathaway, China’s Ante Group and Japan’s Soft Bank. Company owner Vijay Shekhar Sharma has said that the IPO will further strengthen the offering of innovative and seamless digital products and services to the consumers.
One97’s loss of Rs 1696 crore
Noida-based company Paytm also owns One97 Communications. Paytm said that this IPO will be used to strengthen the payments environment. Along with this, hands will also be tried in new types of business and acquisitions. One97 had shown a loss of Rs 1696 crore on March 31 at the end of this year, which is less than last year’s Rs 2842 crore. Due to this there has been a decrease of 14.6 crores i.e. 2802 crores in revenue.
The company was started a decade ago
Started a decade back, Paytm started its business with mobile recharge and has become the largest platform in the field of digital payments. It grew rapidly after Uber identified it as a quick payment option. The announcement of IPO by Paytm comes at a time when the trend of digital payments is increasing due to the pandemic and the payment option has been started by Facebook, Google and WhatsApp in the country.
Paytm wants to raise Rs 2000 crore before IPO. In recent times, most startups have run out of cash. It is facing liquidity in the market due to foreign investment. That’s why most startup companies have started taking the route of IPO to raise money directly from the market. In recent times, Zomato, Flipkart, Nayika and Ola have done the same. If Paytm raises Rs 16640 crore through IPO, then it will become the third largest private company to raise IPO after Coal India and Reliance Power.
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