PayTM files for an IPO 🔥

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Jul 20, 2021

1 min read

Move along kids, daddy’s here — PayTM finally filed for its IPO last night, looking to raise $2.2 billion from the markets, topping Zomato and any other Indian company for at least a decade.

Alibaba, Warren Buffett’s Berkshire Hathaway, and Softbank, some of the biggest shareholders will offload about a billion dollars worth of shares, while the remaining billion will be issued new.

Some quick stats:

  • ₹2,800 crores in revenues last year, down about 12.5%
  • Processes ₹4 lakh crores of payment volumes, servicing 114 million+ annual transacting unique users
  • Lost ₹1,700 crores, as COVID piled up surprise expenses — but improving

Honestly, valuation when paired with fundamentals, does look a bit outrageous. But, there’s ample signs of improvement in the numbers — with marketing expenses tanking, payment processing costs going down, which when held up against looming recovery on mainstreet, could drive some serious windfalls for the business.

Bloomberg Quint has a solid breakdown.

Going forward — rigorous parallels with emerging market companies like $PAGS, $MELI, $STNE, and even South East Asian ventures are inevitable, and traditional investors will continue to ask hard questions.

But looking at the reception for the Zomato bid, you bet there’s plenty of risk appetite right now, from both institutional and average-joe investors.

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