Paytm’s Rs 16,000 Cr IPO Launch In October; Claims To Will Stop Losses In 18 Months
Indian Stock Market recently witnessed a massive response to one of the food tech unicorns. The market is now on a ride as many Indian startups are lining up for Initial Public Offering. And upcoming Diwali will come up with a lot of excitement in the Market. The reason is Indian fintech giant Paytm is going for IPO by the end of upcoming October.
The Paytm story has been synonymous with the story of digital India. It started in 2010 when the internet had started to spread in the hinterland of the country. It started as a platform for mobile phone top-ups, it grew quickly into a fintech firm offering services including insurance, gold sales, bank deposits, remittances, and movie and flight ticketing. And now it is preparing to open its door to public/retail investors as well.
Paytm IPO is brewing
A source familiar with the matter asserted on Monday that Indian digital payments firm Paytm expects to launch its initial public offering (IPO) at around the end of October, pending regulatory approvals.
With the condition of anonymity, the source said, Paytm, which has filed for a ?16,600 crore ($2.2 billion) IPO that will likely be the largest ever in India. The company expects to break even in the next 18 months.
While talking about the possible timeline of the IPO, the source said, “Hopefully Paytm will be able to go out before Diwali.”
On the path towards profitability
The startup has China’s Ant Group and Japan’s SoftBank among its backers. It had registered an operating loss of 24.68 billion a year before. Now, it has narrowed its operating loss to ?1,655 crores in the financial year to end-March 2021.
“Paytm is on the path to profitability now. If the company continues the way it is doing right now 18 months is quite reasonable, assuming there is no COVID-related impact to the business.”, the source projected while speaking hopefully on the issue.
When Paytm was contacted for the comment, it declined to comment.