TechCrunch reported last month that Flipkart was in talks to raise over $1 billion in what is expected to be its financial fundraise ahead of an IPO. Earlier this year, food delivery startup Zomato said it plans to raise $1.1 billion through an initial public offering. Paytm is the latest Indian giant startup that has expressed an interest in becoming public in recent months. We believe the super-app battle in India is not a ‘winner takes all’ but a game of execution, business building, and creating a superior customer experience with ecosystem integration,” Bernstein analysts added. It now allows users to send money to friends, buy small items like coffee or clothing, and finance big-ticket items like cars. “However, under the hood, Paytm leads on merchant payments and has built an ecosystem of synergistic fintech verticals around its ‘super-app.’ The ecosystem spans payments (wallet/UPI), full-suite merchant acquiring, credit tech, digital bank, wealth, and insurance tech. Paytm was founded in 2010 as a payments transfer business. “With the advent of UPI, there has been a rising narrative that questioned Paytm’s market leadership,” the analysts wrote, referring to the exponential growth of payments stack developed by retail banks in India that has been adopted by several firms, including Google and PhonePe (as well as Paytm), and which has somewhat lowered the appeal of mobile wallets in India. Paytm declined to comment.Īn overview of Paytm’s financial services ecosystem (Bernstein) Two sources familiar with the matter told TechCrunch that Paytm plans to raise about $3 billion and is targeting a valuation of up to $30 billion in the IPO. Paytm, which is backed by Alibaba and SoftBank, hasn’t shared when it plans to file for the IPO, but has sought shareholders’ response to their intention to sell stakes by the end of the month. Company got bids for 1.9 times the shares on offer at 5 p.m. The startup said in the letter that it has received an in-principle approval from the board of directors to pursue the public market. Paytm IPO, India’s Biggest Sale, Fully Sold on Final Day. This is the first time the Noida-headquartered firm, which is valued at $16 billion and has raised over $3 billion to date, has commented on its plans about the IPO. The startup has offered its employees the option to sell their stakes in the firm. In a letter to shareholders and employees, Paytm said that it plans to raise money by issuing fresh equity in the IPO, and also sell existing shareholders’ shares at the event. Others see promise in the Paytm model if it builds on its expanding customer base.Paytm, India’s most valuable startup, confirmed to its shareholders and employees on Monday that it plans to file for an IPO. “Considering Paytm’s heavily cash-burning business model, no clear path to profitability, large regulatory risks to the business and questionable corporate governance, we believe the company is overvalued at the upper end of price band of 2,150 rupees,” analysts Suresh Ganapathy and Param Subramanian wrote in the note. slapped the company with an initial “underperform” rating and a price target of 1,200 rupees, 44% lower than the IPO price. The IPO price band has been fixed at Rs 2,080 to Rs 2,150 per share. The issue size is Rs 18,300 crore Rs 8,300 crore in fresh stock and Rs 10,000 crore via OFS. Here are some of the key details investors may keep in mind: The issue opens on Novemand closes on November 10, 2021. A stunning two-day plunge by India’s Paytm after its initial public offering casts a shadow over the prospects for technology firms. While sales at its core payments and financial-services arm rose 11% in the year ended in March, overall revenue dropped 10% amid intensifying competition, the company reported in July.Įven before trading began, Macquarie Capital Securities (India) Pvt. Paytm is expected to list in mid-November. Paytm’s Debacle Casts Doubt Over IPOs for Indian Startups. They all either declined to comment or didn’t respond to requests for comment.Ĭritics have questioned Paytm’s prospects in recent months. Paytm’s IPO was managed by leading banks, including Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., ICICI Securities Ltd.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |