Fintech Paytm Gets Regulatory Nod for India’s Biggest Ever IPO: Source

By | October 22, 2021

NEW DELHI – Indian fintech firm Paytm has received approval from the capital markets regulator for its $2.2 billion stock market listing that is likely to be India’s biggest ever IPO, a source familiar with the matter told Reuters on Friday.

Paytm was planning its initial public offering for around the end of October, Reuters previously reported.

Update: India’s Digital Payments Startup Paytm Seeks to Raise $2.23 Billion in IPO

The company, whose backers include Ant Group, SoftBank’s Vision Fund and Berkshire Hathaway, narrowed its operating loss to 16.55 billion rupees ($221.00 million) in the financial year that ended in March 2021, from 24.68 billion a year earlier. A source told Reuters in July that Paytm was likely to break even in 18 months.

Several first-generation homegrown startups in India are preparing to go public on domestic bourses, following on the heels of food delivery firm Zomato which made a stellar stock market debut in July and which also counts China’s Ant Group as a shareholder.

Ant Group, with a roughly 30% stake, is Paytm’s largest shareholder.

Launched a decade ago as a platform for mobile recharging, Paytm grew quickly after ride-hailing firm Uber listed it as a quick payment option. Its use swelled further in 2016 when a ban on high-value currency bank notes boosted digital payments.

Paytm has since branched out into services including insurance and gold sales, movie and flight ticketing, and bank deposits and remittances.

($1 = 74.8880 Indian rupees) (Reporting by Sankalp Phartiyal; editing by Jason Neely and Susan Fenton)

Topics Legislation InsurTech India

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