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Paytm to raise $2.2bn in IPO

Paytm to raise $2.2bn in IPO

Indian digital payments giant Paytm is seeking to raise up to $2.2 billion in an initial public offering.

In draft papers submitted to regulators, Paytm says it will issue new shares worth 83 billion rupees (about $1.1 billion), with current investors - including Ant Group, SoftBank and Berkshire Hathaway - selling another 83 million rupees in stock.

The company is also in talks about a potential pre-IPO placement of 20 billion rupees.

Paytm says it will use the proceeds to grow its payments ecosystem and invest in new areas, make acquisitions and build partnerships.

Paytm was last valued at $16 billion during a 2019 funding round, but its price has risen substantially in a market where regulatory pressure for a move away from cash and the Covid-19 pandemic have combined to create a perfect storm for digital payments.

Founded in 2009 as a digital payments platform, Paytm has diversified into new areas in recent years, including credit cards and wealth management.

It has also found itself facing increased competition from a host of US giants, with WhatsApp, Google, Amazon and Walmart, via its PhonePe service, all moving in on its territory.

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