New Delhi: Paytm IPO is aiming to raise Rs 16,600 crore. Paytm’s parent company One97 Communications has filed Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) disclosing the details about the much-awaited Initial Public offering, according to media reports.
- According to the DRHP, Paytm IPO will comprise a fresh issue of Rs 8,300 crore, media reports say.
- Apart from the fresh issue, Paytm IPO will have offer for sale (OFS) of Rs 8,300 crore.
- Notably, Paytm IPO will be one of the biggest initial public offerings as the two of biggest are Coal India and Reliance Power IPOs.
- Paytm is backed by Japan’s SoftBank, China’s Ant Group, and Berkshire Hathaway.
- Paytm is building ‘real revenue’ while its competitors continue to spend heavily on cashbacks and incentives to acquire users: The Bernstein report said, “PhonePe and Google Pay continue investing in providing customer incentives and spend on marketing at 2.5-3.0x revenue (FY20 MCA filings). Paytm has streamlined its marketing spending — from 1.2x in FY17, to 0.4x in FY20, and now stands at 0.2x of revenue (FY21).”, as per IANS report.
- Paytm’s strategic and investment focus has shifted to two areas: A) Building a full-stack payments suite beyond UPI — Point-of-sale, Paytm payments gateway, Paytm Payments Bank. B) Building a financial services platform e with focus on Pay-later lending (Paytm Postpaid) and wealth management/Insurance (Paytm Money), as per IANS report.
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