Paytm to raise $1.1 billion from anchor investors in huge IPO anchor round by anchor investors

 

Paytm to raise $1.1 billion from anchor investors in huge IPO anchor round by anchor investors

Other top pension funds including big names like BlackRock, CPPIB, and GIC, long-only funds as well as sovereign wealth funds are set to be part of the anchor round.

IPO-bound financial services firm Paytm has roped in large institutional investors including BlackRock, CPPIB, and GIC for its anchor round, in which it will raise Rs 8,250 crore or $1.1 billion, sources confirmed to Business Today.

 

The company's anchor round, $1.1 billion, will see participation from long-only funds, the world's top pension funds, as well as sovereign wealth funds such as BlackRock, CPPIB, and GIC, a source said.

 

According to sources, the Vijay Shekhar Sharma-led firm has secured interest from large blue-chip global tech funds for its $2.4 billion IPO anchor round, which will close on November 3. As per the sources, Paytm's anchor is ready to watch the rounds. Some mega investors are making their first investment in India through their tech-focused funds. The company will list on the stock exchange on November 8.

 

It is set to raise Rs 18,300 crore ($2.4 billion) from the markets through a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore. The price band has been kept in the range of Rs 2,080-2,150 and will open on November 8 and close on November 10.

 

According to a RedSeer report, Paytm is already the largest payment platform in India based on the number of subscribers, number of merchants, number of transactions, and revenue. As per the company's RHP, Paytm's total user base has grown to 337 million registered users and over 21.8 million registered merchants as of June 30, 2021. Paytm's GMV increased from Rs 69,700 crore in the three months ended June 30, 2020, to Rs. 1,46,900 crore in the three months ended June 30, 2021.

 

Paytm's financial services bets have begun - revenue from operations grew 62 percent year-on-year, while its contribution margin grew 85 percent year-on-year for Q1FY22 on a positive note. In fact, payments and financial services alone contribute about 80 percent of its revenue.

 

Additionally, the company's lending vertical which also offers Paytm Postpaid (Buy Now Pay Later) has seen huge growth as the company disbursed 1.4 million loans in Q1FY22 and 2.8 million loans in Q2FY22 as per RHP. It also has a stronghold in the offline merchant space through its Paytm devices. The company had 947K devices deployed by June 2021 and 1,280K devices by September 2021.

 

The company is not focusing on UPI alone. Instead, it has built a multi-stack payment architecture through payment options – Paytm Wallet, Paytm UPI, Paytm Postpaid (Buy Now, Pay Later), Credit Card/Debit Card, Paytm POS, All-in-One QR Code, Soundbox among others.

In Hindi Article:- https://akbnews01.blogspot.com/2021/11/11.html

Youtube link:- https://www.youtube.com/channel/UCZ-fNQYuvePn3GctNsoSuOA