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Here’s what analysts have to say about India’s biggest IPO ever from Paytm

<ul><li>Paytm is reportedly seeking a valuation of over $20 billion, however advisors have recommended it to go for a lower valuation.</li><li>Sources at Paytm claim that the company decided to skip with the pre-IPO round in order to adhere to the timeline it set for itself.</li><li>Paytm is planning to raise ₹16,600 crore through this IPO, half of which will be through fresh issues.</li></ul>One 97 Communications — the parent company of digital payments giant Paytm — has reportedly decided to skip its pre-initial public offering (IPO) sale over valuation differences. The company is seeking a valuation of over $20 billion based on the feedback of its initial investors. However, advisors have recommended it to go for a lower valuation. The development was first <a href="https://www.bloomberg.com/news/articles/2021-10-21/paytm-mulls-scrapping-pre-ipo-sale-plan-on-valuation-differences" data-type="tilCustomLink">reported</a> by Bloomberg. A source aware of the development told Business Insider that Paytm has decided to do away with the pre-IPO round in order to adhere to the timeline it set for itself. Besides this, the company source highlighted that they are not aware of any valuation difference between the investors and Paytm’s management. Meanwhile, the Bloomberg report suggests that Paytm may still go for a pre-IPO sale at a lower valuation. Business Insider India has reached out to Paytm seeking more detail about the report and cancellation of their pre-IPO sale. Previously a Bloomberg <a href="https://www.bloomberg.com/news/articles/2021-07-12/paytm-said-to-consider-270-million-share-sale-in-pre-ipo-round">report</a> had highlighted that Paytm is planning to raise $270 million (₹2,028 crore) from its pre-IPO round. Pre-IPO is an option for companies to raise capital from private investors before the public issues. It’s not a mandatory requirement and companies can choose to opt for it based on their requirements. Paytm is planning to raise <a href="https://www.businessinsider.in/business/news/paytm-has-filed-for-2-2-billion-ipo/articleshow/84465551.cms">₹16,600 crore ($2.2 billion) </a>through this IPO. Half of this capital would be raised as a fresh issue and the remaining will be a secondary issue, giving partial exits to Paytm’s investors. This will be India’s biggest IPO so far, surpassing Coal India’s, which raised ₹15,000 crore in October 2010. Securities and Exchange Board of India (SEBI) is <a href="https://www.businessinsider.in/stock-market/news/sebi-approves-fino-payments-banks-1300-crore-ipo-paytm-next-in-line/articleshow/86755408.cms">yet to approve the IPO</a>. Paytm is one of the biggest digital payments companies in India with offerings across several digital modes of payments like unified payments interface (UPI), credit and debit cards payments. It also offers wealth management solutions through Paytm Money and banking services through Paytm Payments Banks. The company is currently valued at $16 billion, after <a href="https://www.businessinsider.in/business/startups/news/vijay-shekhar-sharma-opens-next-chapter-at-paytm-as-it-raises-1-billion-from-t-rowe-softbank-and-others/articleshow/72217033.cms">raising </a>$1 billion in November 2019 from T Rowe Price, Ant Group and Softbank Vision Fund. According to several media reports, Paytm is expected to be valued somewhere between $25 billion to $30 billion post issue SEE ALSO <a href="https://www.businessinsider.in/india/news/the-depth-of-indias-vaccination-drive-gujarat-tops-the-list-up-and-bihar-yet-to-vaccinate-a-third-of-their-population/articleshow/87186515.cms" data-type="tilCustomLink">The depth of India’s vaccination drive — Gujarat tops the list, UP and Bihar yet to vaccinate a third of their population</a> <a href="https://www.businessinsider.in/business/corporates/news/reliances-oil-to-chemicals-business-seems-to-be-in-the-right-spot-to-leverage-chinas-climate-crackdown/articleshow/87152945.cms"></a><a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-cements-its-lead-over-airtel-in-both-total-as-well-as-active-subscribers/articleshow/87156675.cms">Reliance Jio cements its lead over Airtel in both total as well as active subscribers</a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jios-september-earnings-to-be-driven-by-aggressive-subscriber-additions/articleshow/87178742.cms">Reliance Jio’s September earnings to be driven by aggressive subscriber additions</a>

Paytm may skip its pre-IPO sale as advisors reportedly recommend lower valuation

<keyword id="6357120" type="UNKNOWN" weightage="20" keywordseo="PayTM">Paytm</keyword>’s parent company <keyword id="4546857" type="UNKNOWN" weightage="20" keywordseo="one97communications-limited">One97Communications Limited</keyword> just received $1.4 billion funding from Japan’s leading Internet and telecom major <keyword id="163404" type="COMPANY" weightage="100" keywordseo="Softbank">SoftBank</keyword>. This is the largest round from a single investor in India. Paytm said the investment will help it grow its leadership in the online payment system. “It will also complement our plan to invest Rs 10,000 Cr (approx $1.6 Bn) over the next three to five years towards our commitment to enable half a billion Indians to join the mainstream economy,” Paytm stated in a blog. Paytm said it will continue to innovate and expand into new online and offline use-cases. Meanwhile, <keyword id="3236791" type="UNKNOWN" weightage="20" keywordseo="Paytm-payments-bank">Paytm Payments Bank</keyword> is also becoming operational from next week and will be headed by CEO Renu Satti. Meanwhile, Paytm founder <keyword id="198636" type="PERSON" weightage="20" keywordseo="Vijay-Shekhar-Sharma">Vijay Shekhar Sharma</keyword> will hold the majority share in Paytm Payments Bank, with the rest being held by One97 Communications.

Paytm gets $1.4 billion funding from SoftBank; largest round from a single investor in India

<keyword id="6357120" type="UNKNOWN" weightage="100" keywordseo="PayTM">Paytm</keyword>’s owner <keyword id="181441" type="COMPANY" weightage="20" keywordseo="One97-Communications">One97 Communications</keyword> is going to raise more than $1.9 billion, or Rs 12,000 crore from <keyword id="163404" type="COMPANY" weightage="100" keywordseo="Softbank">SoftBank</keyword>. This deal is seen as the single-largest round of funding for an Indian e-commerce company. After the deal, valuation of One97 Communications will touch $9 billion and provide a 20% stake to SoftBank. "The deal was agreed on earlier this week and is now waiting for board approval,” one of the persons familiar with the transaction told ET. In the last round, Paytm had raised funding from <keyword id="6369515" type="COMPANY" weightage="20" keywordseo="Mediatek">MediaTek</keyword>, which happened nearly eight months back. That time, its valuation was at $4.8 billion. SoftBank has raked in around $2 billion in various Indian companies such as <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword>, Ola, OYO, and Grofers. Meanwhile, Paytm is building its coffers to compete with WhatsApp and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>'s Phonep.

Paytm’s owner to raise over Rs 12,000 crore from SoftBank; single largest funding round so far in the industry

Taiwanese semiconductor maker <keyword id="6369515" type="COMPANY" weightage="100" keywordseo="Mediatek">MediaTek</keyword> has decided to invest Rs 400 crore ($60 million) into India's <keyword id="338385" type="COMPANY" weightage="100" keywordseo="One97">One97</keyword> Communications, which runs the mobile payment platform <keyword id="6357120" type="UNKNOWN" weightage="100" keywordseo="PayTM">Paytm</keyword>. Post this, One97 would be valued at $4.8 billion. Before this, the company was valued at $2.3 billion 
 
The total funding raises in this round is $300 million, and the rest of the capital would be put in by One97’s existing investors Alibaba, its payments affiliate Alipay, and venture capital firm SAIF Partners which was its earliest investor. 
 
Also read: <a href="http://www.businessinsider.in/Paytm-to-be-valued-at-5-billion-after-300-Million-funding-round/articleshow/53907211.cms">Paytm might raise Rs 2,000 crore in next funding, to be valued at $5 billion</a> 
 "With long-haul investors, Paytm is in an incredible position to provide a new paradigm of banking and financial services," <keyword id="198636" type="PERSON" weightage="100" keywordseo="Vijay-Shekhar-Sharma">Vijay Shekhar Sharma</keyword>, founder of One97, told ET. "Even without this capital, we were sitting on a runway of 36 months." 
 
It was in 2015 that One97 had raised about Rs 4,400 crore from Alipay and Alibaba, making them owners of about 40% stake in the company. 
 
<a href="http://images.financialexpress.com/2016/08/paytm-Reu-L.jpg">Image source</a>

Paytm's parent One97 to be valued at $4.8bn post latest funding round

In a bid to expand its business aggressively, <a href="http://www.businessinsider.in/searchresult.cms?query=paytm">Paytm</a> has ventured into online movie ticket market and has tied up with <a href="http://www.businessinsider.in/searchresult.cms?query=PVR">PVR</a>. 
 
Paytm inked a deal with PVR as part of its Rs 120 crore investment in the <a href="http://www.businessinsider.in/Chinas-Baidu-to-invest-in-Zomato-BookMyShow-BigBasket/articleshow/50561568.cms">online movie ticket</a> business. 
 
READ MORE: <a href="http://www.businessinsider.in/Not-soExclusive-Vijay-Shekhar-Sharma-answers-your-Paytm-FAQs/articleshow/51492023.cms">Not so Exclusive: Vijay Shekhar Sharma answers your Paytm FAQs</a> 
 
Following this, Paytm will start selling PVR tickets on its platform. 
 
"This is in line with our overall strategy of bringing more payment use cases online. Customers today are asked to shell out more when they pay in advance digitally. We want to eradicate this practice," said Paytm’s Vijay Shekhar Kumar. 
 
"Through this deal, we aim to reach out to more consumers and achieve better penetration in micro markets," said Sanjeev Kumar Bijli, Joint MD of PVR. 
 
Paytm intends to double the online movie ticket market, which is presently 15% of the total domestic market. 
 
(Image: Thinkstock)

You can buy a PVR movie ticket on Paytm now

<keyword id="6357120" type="UNKNOWN" weightage="20" keywordseo="PayTM">Paytm</keyword> wants to strengthen its payments bank operations and is on a hiring spree in the same regard. India's largest mobile payments platform, Paytm, is poaching talent across industries and is even looking to hire around 3,000 employees for the new business, which has a starting budget of Rs 400 crore. 
 
For the starters, Paytm hired former Airtel executive Saurabh Sharma, who was heading market operations at Airtel Money, as vice-president and will handle merchant and agent acquisition. 
 
Paytm also brought Dhruv Dhanraj Bahl from Bain &amp; Company as assistant vice-president and he will lead the branch designs and their roll out across the country. 
 
Neha Gupta from KMPG will join in as deputy general manager soon and will handle business operations,. 
 
"We've shortlisted people for the CEO position and hopefully we should be able to communicate it when the RBI gives us a go ahead," Paytm chief executive officer Vijay Shekhar Sharma told ET, adding “We've decided to put the budget for the payments bank at Rs 400 crore for two years.” 
 
Over 20 senior and mid-management level executives have been hired to kick-start the payments bank operations. 
 
Paytm will decide on what to offer as a part of payments bank operations, including cardless credit card backed by a bank. 
 
RBI, in last year August, granted payments bank licences to 11 applicants including Paytm, Reliance Industries, Bharti Airtel and Vodafone.

Jobs galore: Paytm on a hiring spree, poaches talent across industries!

Paytm’s founder Vijay Shekhar Sharma is planning to dilute nearly 1% stake in One97 Communications Ltd, the holding company, to fund his payment bank operations. 
 Sharma, who received a payment bank licence from the <keyword id="6354335" type="CITY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword>, has plans to begin operations by next financial year and has to own 51% of the payment bank. 
 
As per the RBI mandate, the Indian promoter has to own 51% and the remaining can be owned by other corporate entities. 
 
Sharma told ET he has plans to infuse between $25 million and $50 million of capital into the bank until operations become profitable. 
 
"We will go to the market post-Diwali and tap current investors, banks as well as financial institutions for funding. The stake dilution will be less than 1%," said added. 
 
Paytm is backed by China’s Alibaba Group as it pumped in $680 million in September, including others. 
 
After this move, Sharma's stake is now 21% in the company, which is valued at about $3.4 billion. 
 
Sharma also made initial estimates and said the Paytm Payment Bank Ltd would require Rs 150 crore to set up and EY and McKinsey have been roped in to prepare a blueprint. 
 
In August, the central bank had given in-principle nod to 11 entities to run payment banks, including Reliance Industries, Airtel M Commerce Services, Vodafone m-pesa Ltd., etc.

Paytm's Vijay Shekhar Sharma has RBI nod for payment bank and he is planning it big. Here’s how

<ul><li><keyword id="6357886" type="General" weightage="20" keywordseo="phonepe" source="Orion">PhonePe</keyword> has opened its data bank for everyone with the launch of its latest product called Pulse.</li><li>The company’s CEO Sameer Nigam noted that 90% of PhonePe’s transactions are UPI-based, so they are not allowed to charge commisions on it. </li><li>Interestingly, PhonePe is the biggest player in the UPI market with control over 45% transactions on a monthly basis.</li></ul>Walmart-owned digital payment firm PhonePe on Thursday, September 2, opened its data bank for everyone with the launch of its latest product called Pulse. Pulse — available as a website and report — will give deeper insights into <keyword id="12008998" type="General" weightage="20" keywordseo="phonepe-data" source="Orion">PhonePe data</keyword> across payments and financial services. The platform as well as the report will be updated quarterly with latest insights about PhonePe’s transaction value and volume, financial services sold on the platform and more. This product includes PhonePe data bank in anonymised format. Users can check out the data at <a href="https://www.phonepe.com/pulse/">Pulse.phonepe.com</a> <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Key takeaways from Pulse </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PhonePe has processed over 2000 crore transactions to date. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">The company has its presence spread across 300 million users in 19,000 pin codes. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over 63% of first time transactions on the PhonePe app are to transfer money, confirming that this category acts as the initial hook for customers to download a unified payments interface (UPI) app. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">The Walmart-owned company processed nearly 400 crore transactions worth ₹7.4 lakh crore in the April to June quarter of 2021. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Last quarter it reported nearly 150 crore merchant payments and 174 crore peer-to-peer payments. </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Sameer Nigam, founder and chief executive (CEO) of PhonePe, believes that such a data bank could actually lead to some conversations among policymakers and bring about a change in the digital payments network. The major change that any fintech player like PhonePe is looking for is being able to make money out of <keyword id="4052276" type="General" weightage="20" keywordseo="upi-transactions" source="Orion">UPI transactions</keyword>. This is because it's the largest digital payments format, which witnessed 3.5 billion transactions in August 2021. Currently, the Indian government has banned payments players from charging customers/merchants on UPI transactions. Although, the same players can charge on other non-UPI digital transactions like card payments or wallet transactions. This is known as the merchant discount rate (MDR), which is a fee paid by merchants to accept payments. Nigam, in the Pulse launch event held on Thursday, highlighted that currently 85-90% of PhonePe transactions are carried out using UPI that has "zero MDR". For perspective, PhonePe actually processed nearly 400 crore transactions worth ₹7.47 lakh crore in the April-June quarter of 2021. A 90% rate would be that PhonePe did not earn any money over 350 crore transactions. “It is our hope that if more and more data is transparent, policymakers will see perhaps on a lifecycle, but they will clearly see implications of decisions. For example, like zero MDR. I do believe that it limits market participation. NPCI data shows the number of participants in the market has come down by almost two-third from 45 companies that were processing UPI to and now the number on NPCI websites is 15,” Nigam said. “I think it will start a lot of conversation,” he added. Despite being the biggest player in the India UPI market — with a market share of 43-45% on a monthly basis — PhonePe reported a revenue of ₹371.8 crore in financial year 2020. This was almost double of the number it showcased in FY2019. Meanwhile, sources in Paytm say that they earn about INR 1,700-₹1,800 crore through digital payment. At that time, the company was processing about 800-900 million UPI transactions on a monthly basis. Currently, it’s at 900 million to 1 billion monthly, as per National Payments Council of India (NPCI). SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/uber-has-ola-zomato-has-swiggy-but-whos-urban-company-competing-with/articleshow/85835674.cms">Uber has Ola, Zomato has Swiggy but who’s Urban Company competing with?</a> <a href="https://www.businessinsider.in/business/corporates/news/zomato-is-shutting-down-its-singapore-and-uk-based-subsidiaries/articleshow/85858611.cms" data-type="tilCustomLink">Zomato is shutting down its Singapore and UK-based subsidiaries</a> <a href="https://www.businessinsider.in/business/corporates/news/paytm-valuation-has-increased-by-nearly-40-a-share-heres-how/articleshow/85826886.cms">Paytm valuation has increased by nearly $40 a share — here’s how</a>

You Searched For "paytm valuation" and got 9 results

Here’s what analysts have to say about India’s biggest IPO ever from Paytm

BI India Bureau

Paytm may skip its pre-IPO sale as advisors reportedly recommend lower valuation

Kritti Bhalla

Paytm gets $1.4 billion funding from SoftBank; largest round from a single investor in India

BI India Bureau

Paytm’s owner to raise over Rs 12,000 crore from SoftBank; single largest funding round so far in the industry

BI India Bureau

Paytm's parent One97 to be valued at $4.8bn post latest funding round

BI India Bureau

You can buy a PVR movie ticket on Paytm now

BI India Bureau

Jobs galore: Paytm on a hiring spree, poaches talent across industries!

BI India Bureau

Paytm's Vijay Shekhar Sharma has RBI nod for payment bank and he is planning it big. Here’s how

BI India Bureau

PhonePe is citing data to argue that merchants should pay for UPI transactions

Kritti Bhalla

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