12/26/2023 0 Comments Who owns paytm![]() ![]() Investors and analysts who expressed concern over the IPO valuation of the loss-making Paytm at about $18.7 billion had cautioned that "frothy" valuations with unclear business models might not end up well in the current market. ![]() "This episode should hopefully bring some realism to valuations that promoters expect from the public markets," said Kristy Fong, a senior investment director at fund manager abrdn, based in Singapore. Indian companies have raised a staggering $9.7 billion through initial share sales in the first nine months of 2021, for the highest such tally in any of the corresponding periods of the last two decades, said accountants EY.īut offerings planned for later this year, such as those by payments rival MobiKwik and hotel aggregator OYO, will face questions after Paytm's debut plunge of more than 27%, as investors turned queasy at its lack of profits and lofty value. MUMBAI (Reuters) - Paytm's dismal stock market debut this week is likely to put a damper on future offerings after the IPO of the digital payments firm ranked among the worst-performing in Indian history, six analysts and bankers said on Friday. REUTERS/Florence Lo/Illustrationīy Abhirup Roy, Scott Murdoch and Anshuman Daga The startup’s offerings compete with a range of services, including Google Pay, WhatsApp Pay, PhonePe, MakeMyTrip and BookMyShow.FILE PHOTO: The interface of Indian payments app Paytm is seen in front of its logo displayed in this illustration picture taken July 7, 2021. In the filing last week, Paytm said that it plans to deploy more than $250 million of the total capital it is seeking to raise in the IPO to enter new initiatives and explore acquisition opportunities. Shares of Nykaa, a fashion e-commerce startup, and Indian insurance aggregator PolicyBazaar, have also seen strong interest by institutional investors in recent days as both of them plan to list later this month. ![]() ![]() Indian food delivery giant Zomato made a stellar debut earlier this year. Paytm’s IPO comes at a time when the pandemic has fuelled India’s digital economy and local stock exchanges are showing growing appetite for consumer tech stocks. In Q2, the startup’s losses surged to $50.9 million, Paytm said, citing additional marketing and promotional campaigns in the run up to the IPO. In a filing last week, Paytm disclosed that it clocked $118 million in revenue from its operations in the quarter that ended in June this year, up 62% from the prior quarter. The startup, led by Vijay Shekhar Sharma, describes itself as having “created a payments-led super app, through which we offer our consumers innovative and intuitive digital products and services.” The startup says it has amassed more than 330 million users across its services, more than a third of whom transact annually. It has since expanded to a wide range of services such as payment gateway, e-commerce marketplace, movie and travel ticket booking, as well as insurance and digital gold. Paytm launched in 2009 to help users easily make digital payments from their phones and top up credit. The startup is planning to list around November 18, TechCrunch has previously reported.Ī successful listing would enable Paytm to attain the title of the biggest IPO in India, surpassing a record $2.07 billion initial public offering by government-owned coal mining and refining firm Coal India 11 years ago. Paytm, which will open the bid for its shares for three days starting November 8, has kept the share price range between 2,080 to 2,150 Indian rupees ($27.9 to $28.85). Abu Dhabi Investment Authority, Dutch pension investment firm APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension out of Singapore, University of Cambridge, UBS, Mirae Asset and Standard Life Aberdeen also participated in the anchor round. The investments of $140 million by Blackrock and $126 million by CPPIB are also the largest by institutional investors in an Indian IPO. Backed by Alibaba, Berkshire Hathaway and SoftBank, Paytm was valued at $16 billion in its previous funding round in the second half of 2019. The startup, which offers a range of financial services, is seeking a valuation of over $19 billion in the IPO, it said in a call with reporters last week. With Wednesday’s investment, Paytm has now secured nearly half of the $2.45 billion capital it is looking to raise from the IPO. Bidding for shares of Paytm was oversubscribed by 10 times, according to a person familiar with the matter. Paytm has raised $1.104 billion in India’s largest-ever anchor round as part of its initial public offering, which is also shaping up to be the nation’s largest, as the poster child of the Indian startup ecosystem moves closer to listing in the public markets.īlackrock, GIC, Canada Pension Plan Investment Board, Birla MF are among the investors who financed the anchor round, Paytm said in a filing with a local exchange. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |