For UPI transactions, its market share is only 14%. Its share in overall mobile payments transactions is 40% while in the wallet payment segment it is a whopping 70%. Redseer data shows that Paytm is the largest payments platform in the country with a total gross merchant value (GMV) of over Rs 4 lakh crore in the last fiscal. Today, it has three main business verticals-payment services, commerce and cloud services and financial services while the app serves as a super-app which lets you make payments, top up your digital wallet, indulge in fantasy sports, shop online, buy stocks and mutual funds etc. But how does PayTm make money? Paytm started in 2010 as a prepaid mobile recharge platform and later expanded into a single destination for all kinds of bill payments as well as a payments bank. The company will also plough back some proceeds into its general insurance arm Paytm Insurtech (PIT). What will the offer be used for? The company intends to use the funds to strengthen the Paytm ecosystem by acquiring and retaining consumers and merchants as well as invest in new business initiatives, acquisitions and strategic partnerships. SoftBank, which owns 19.6% will be selling shares worth Rs 1,689 crore, while Elevation Capital, which owns 17.2% stake, will be selling shares worth Rs 2030 crore. 75 per cent will be reserved for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and the remaining 10 per cent for retail investors during the issue. What's the plan? Paytm wants to raise Rs 8,300 crore through fresh issues, and the remaining Rs 10,000 crore through an offer for sale (OFS) from existing stakeholders in the company. The company has increased its IPO size by Rs 1,700 crore from the earlier estimate of Rs 16,600 crore, since existing shareholders including Alibaba’s Ant Financial and Softbank want to sell more stake. Paytm is currently India’s leading digital ecosystem for consumers and merchants, with over 337 million registered consumers and over 21.8 million registered merchants as of June 30, according to a report by Redseer management consulting company. This would be India’s largest IPO to date, surpassing Coal India’s Rs 15,745 crore public issue raised in October 2010. The company plans to raise Rs 18,300 crore ( $2.4 billion). Paytm was last valued at $16 billion in 2019 when it raised $1 billion from investors. NEW DELHI: One97 Communications, the owner of Paytm, which is India's leading digital ecosystem with over 317 million users, is all set to come out with an initial public offer ( IPO) on November 8, valuing the company at $19.3–19.9 billion.
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