Paytm raised $ 1,104 million in India’s largest anchor round in its initial public offering. This is as India’s most iconic startup ecosystem moves closer to listing on the public markets.
Blackrock, GIC and the Canada Pension Plan Investment Board were among the investors who funded the anchor round. Paytm set in a presentation to a local exchange. According to someone familiar with the matter, Paytm shares were oversubscribed 10 times.
Paytm now has nearly half of the $ 2.45 billion capital it needs to raise through the IPO. Wednesday’s investment means Paytm can now secure the remaining funds. In a conference call last week, the startup said it is seeking a valuation of more than $ 19 billion to launch its IPO. Paytm, which is supported by Alibaba, Berkshire Hathaway and SoftBank, was valued at $ 16 billion during its previous round of funding in 2018.
Blackrock’s $ 140 million investments and $ 126 million CPPIB investments are India’s largest IPO investment by institutional investors. The main round was also attended by the Abu Dhabi Investment Authority and the Dutch pension investment company APG, New York City.
Paytm will allow bidders to place their shares for three days starting November 8. The share price range is between 2,080 and 2,150 Indian rupees ($ 27.9 – $ 28.85). TechCrunch has previously reported that the startup plans to list on November 18.
Paytm could beat Coal India’s record $ 2.07 million initial public offering 11 years ago, if it is successful in listing.
Paytm was launched in 2009 to allow users to make digital payments using their smartphones and top up their credit. Paytm has expanded to offer a variety of services, including e-commerce marketplace, payment gateway, movie and travel ticket booking, insurance, and digital gold.
Vijay Shekhar Sharma is the founder of the startup. It says it has “created a payments-based supepp, through which our consumers can offer their consumers innovative and intuitive digital services, with more than a quarter of them transacting annually.”
Paytm revealed in a presentation that it had earned $ 118 million from its operations during the quarter that ended in June, an increase of 62% from the previous quarter. Paytm reported that in the second quarter start-up losses increased to $ 50.9 million. This was due to additional promotional and marketing campaigns.
Paytm’s IPO comes at a time when India’s digital economy is thriving and local stock exchanges have a growing appetite for tech stocks. Zomato, an Indian food delivery company, made a strong debut earlier in the year. Institutional investors have been keen on Indian insurance aggregators Nykaa and PolicyBazaar, both of which plan to list this month.
Paytm stated in its filing last week that it will deploy more than $ 250 million of the capital it seeks to raise through the IPO. This money will be used to launch new initiatives and search for acquisition opportunities. Their services compete with many others, such as WhatsApp Pay, WhatsApp Pay, and PhonePe.