Ant-backed Paytm targets US$2.2 billion Indian IPO

Indian digital payments leader Paytm, which counts Ant Group and Softbank among its backers, is trying to obtain the approval of regulators for its planned 166 billion rupees (US$2.23 billion) public offering. This is easily one of India’s all-time highest stock listings.

Based on estimates of analysts, the planned offering will earn the firm a US$25bn-valuation. This could be said to be accurately timed to take advantage of the boom COVID-19 and its new normal has brought on the digital economy in India, while also putting the firm farther ahead of the curve in what is becoming a steep contest for market share with rivals Google pay and Whatsapp Pay.

Formerly One97 Communications Ltd Paytm will put new shares valued at 83 billion rupees up for sale, while its existing investors will match the same amount to reach the targeted public offering.

“Companies within the digital space have good growth potential because of the increase in the number of internet users and wide access among the youth,” said Ajit Mishra, vice president of research at Religare Broking in Noida.

Paytm,’s move is expected to spur an array of IPOs by other fintech firms looking to leverage capital market inclusion for the accomplishment of their ambitious expansion plans.

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