In the year 2021, when digital and tech firms have generated so many funds and profits, India is also demonstrating a lot of growth. Since the beginning of the year 2021, India has been launching one Initial Public Offering (IPO) after another. These IPOs are being launched by the tech giants in India.
Just recently, Paytm has announced that it is planning to go for the initial public offering. The firm has announced what it is planning to do in order to generate a vast amount of funds. The sources reveal that Paytm has planned to raise 166 billion INR through the initial public offering. At the time of writing, the 166 billion INR figures translate to $2.2 billion.
The firm has confirmed that the IPO for Paytm will be offered to investors in Mumbai. This is not the only company that has filed for an initial public offering. Just a few days back, it was Zomato that initiated its IPO, which is a food delivery giant. The sources reveal that Zomato had planned to raise $1.3 billion from the sale of the shares it had released in the market.
The request for approval to launch the initial public offering was filed by Paytm on Friday, July 16, 2021.
So far, the initial public offering carried out through Zomato is the largest tech initial public offering. It is being expected that with the launch of Paytm’s initial public offering, it successfully enlist itself as the largest tech IPO in India.
Paytm is expecting that it will be able to gather a lot of positive responses from the IPO and would be able to generate more funds than it has expected. The firm has predicted that following the expected IPO results, it is expecting that the company would value at $25 billion.
Paytm has revealed that many major companies will be participating in the particular initial public offering. Some of the major investors would include Alibaba, Berkshire Hathaway, and Softbank. According to Paytm, it is going to use the proceeds from the IPO towards strengthening the services related to payments.
The funds would also allow Paytm to start new development projects and take the company’s market presence to the next level. The company is aiming to expand its business through a number of initiatives and business acquisitions. The company would eventually acquire more companies in order to increase the circle of services and products it is providing its customers.
Prior to the filing for the IPO, Paytm had reportedly carried out a private fundraiser back in 2020. From the particular fundraiser, the company had managed to bring its market value $16 billion. The company is currently headquartered and operates from Noida, India.