Paytm is one of the popular digital wallets which help people to pay and receive money online. It is Indian based e-commerce payment system headquarter in Noida, Uttar Pradesh, India. Paytm is owned by One97 communication private limited. The wallet provides different kinds of services including mobile recharge, utility bill payment, movies ticket, train tickets, and a lot of payment-related services.
The wallet has brought lots of new changes and improvements in its platform since it was founded. Now, it is one of the largest online wallets in India. The wallet has more than 35 Crores, active users, in its platform and facilitates a transaction worth 50 billion dollars Indian rupee. It was a 100 percent increase from the past year. Similarly, the number of users and number of transactions are also increasing every single day. The figure is expected to increase in the coming year.
As the payment giant is increasing its reach among 687.6 million internets. Besides this, it is also receiving a huge amount of investment as well. Earlier in 2010 it was founded by Vijay Shekhar Sharma with an initial investment of $2 million. Similarly, in 2018 the payment giant was valued at $10 billion. Recently the payment giant has confirmed to its shareholder that it has plans to initiate IPO this year. It has written a letter to its shareholder and employees that it is going to raise money from IPO.
They also told that they will sell the existing shareholders’ share at the event as well. The payment giants have planned to initiate an IPO of about $3 billion. While targeting a valuation of around $30 billion. However, there are many things which is creating a barrier while issuing IPO. In the fiscal year 2019-2020, the company reported a loss of around $233.6 million. Similarly, another $404 million loss in the fiscal year 2018-2019. Even though the company board has approved IPO but there is a long way that to go before entering into the public market.
In recent years, retail investors had also shown good signs of investing in the company. This was also the reason the payment giants want to initiate IPO to let retail investors invest in the company. The decision to initiate IPO wasn’t the first time the company tried to enter a public market long before they were established as the major payment gateway. However, this time the company has received some positive sign from the regulator to enter into the public market