Paytm IPO

Incorporated in 2010, Paytm is a Noida-based company and a subsidiary of One97 Communications. Originally, this company was established as an online mobile recharge platform. That said, over the past few years, it has transformed its business model.

Currently, it is India’s leading online mobile payments and commerce platform, which allows consumers to execute cashless transactions via the Paytm App. Registered merchants can utilise the platform to offer their products and online payment solutions. Moreover, they can use it for advertising purposes.

Apart from offering UPI payments and online bill payments, the fintech company enables individuals to invest in digital gold, mutual funds and buy insurance. Furthermore, users of the app can make cashless payments at stores. Currently, this company generates revenue via escrow accounts, cross-selling and commissions.

Paytm IPO Objectives

- To reinforce the company’s ecosystem via the acquisition and retention of more customers, by giving them access to technology as well as financial services
- Fulfilment general corporate demands
- Financing strategic collaborations, mergers and acquisitions besides new business initiatives

Paytm IPO - Details

As per Paytm’s draft red herring prospectus (DRHP) filed with SEBI, the issue size of Paytm IPO will be Rs. 16,600 crores or $2.2 billion. Besides fresh issue worth Rs. 8,300 crores, it will comprise an offer for sale of the same proportion.

Here are some crucial details regarding the company’s initial public offering that investors must make sure to keep in mind.

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

₹ To be updated

Face Value

₹ To be updated

per equity share

Market Lot

₹ To be updated

Listing at NSE, BSE

Paytm IPO Important Dates

IPO Open Date Yet to be announced
IPO Close Date Yet to be announced
Basis Of Allotment Date Yet to be announced
Initiation Of Refunds Yet to be announced
Credit Of Shares To
Demat ACcount
Yet to be announced
IPO Listing Date Yet to be announced
UPI Mandate Expiry Date Yet to be announced

Why Should You Invest in Paytm IPO?

Paytm was the first company in India to introduce digital payments and mobile wallet services. Accordingly, it enjoys a first-mover advantage. It has also continued to diversify its offerings, and today it boasts of a vast portfolio of services. This aspect, combined with the company's lucrative offers, has been instrumental in expanding its customer base over the years.

Since the outlook in relation to digital payment providers appears positive, especially in the long term, investing in Paytm IPO could prove to be beneficial. Accordingly, investors might want to consider this company’s initial public offer once it is open for subscription.

Financial highlights

Here is a tabular representation of a few essential financial highlights of Paytm from FY18-19 to FY20-21

For the year ending Total Assets (in million) Total Revenue (in million) Profit After Tax (in million)
31 March 2019 Rs. 87,668 Rs. 35,797 (Rs. 42,309)
31 March 2020 Rs. 103,031 Rs. 35,407 (Rs. 29,424)
31 March 2021 Rs. 91,513 Rs. 31,868 (Rs. 17,010)

How to apply for Paytm IPO?

You can apply for the Paytm IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel Broking account. Proceed to book Paytm IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel Broking, apply directly for Paytm IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel Broking to begin your investment journey.

Paytm IPO - Noteworthy Highlights

Here are some essential highlights regarding Paytm:

- India’s leading online payments provider, it has more than 333 million customers. Its client base includes approximately 21 million registered merchants, along with roughly 114 million yearly transacting users.

- The Paytm app offers its users access to an extensive range of mobile-based digital payment options.

- According to a report published by Kantar BrandZ in 2020, Paytm is the most valuable payments brand in India, having a valuation of $6.3 billion.

- This company’s existing shareholders include Alibaba’s Ant Group, Berkshire Hathway, Softbank Vision Fund, and more.

- As of now, Paytm has raised funds worth $32.4 million over 4 funding rounds. As per reports, its last funding was raised on 4 February 2017.

Paytm IPO - SWOT Analysis

strengths

Strengths

  • First-mover advantage: In India, this online payments provider was the first of its kind. Moreover, its time of establishment was ideal as during the same time smartphones were becoming more and more popular in the country.
  • Focus on users’ convenience: One of the most crucial factors that have boosted the popularity of Paytm is its focus on convenience. This platform is operational 24/7. Thus, users can make payments via the app from anywhere at their convenience.
  • Collaboration with merchants: Paytm has more than 20 million registered merchants, and this number is surging each day. This makes its digital platform a favourable option for consumers. The lucid interface of the Paytm App makes it possible for users to operate and make payments through it conveniently.
  • Lucrative offers: This company has attracted a lot of interest from consumers owing to its lucrative offers. These benefits are designed specifically, keeping in mind the perspective of Indian consumers. Accordingly, these offers have played a crucial role in Paytm’s revenue generation.
  • Portfolio of services: As mentioned earlier, this fintech company offers a wide range of services which includes online bill payment, online reservation facilities, etc. It also allows individuals to invest in digital gold and mutual funds. Consumers can make purchases from the Paytm mall. Thus, most of the things that an individual may want to do online can be done through this company’s digital platform.
Weaknesses

Weaknesses

  • Users lack awareness: A large number of registered users of the Paytm App are not aware of all features of the platform. Their lack of knowledge regarding technology tools combined with the fear of fraudulent transactions has a direct impact on this company’s performance.
  • Fear of going digital: Most Indians are yet to embrace the Digital India initiative. There’s still a lot of scepticism when it comes to cashless transactions. However, with time, one can expect to see a surge in non-cash payments.
  • IT infrastructure: There needs to be appropriate bandwidth and speed for the Paytm App to function properly. Although it is not a problem for Tier 1 cities in India, the same might not be the case in remote areas or some locations in Tier 2 cities.
Opportunities

Opportunities

  • Increasing demand for payment aggregators: With the increasing reliance on technology, it appears that more people prefer online transactions to offline modes as they offer maximum convenience. Individuals can now pay their bills or make purchases from any location of their choice. The popularity of online payments has been increasing every day in India owing to the rise of payment aggregators such as Paytm.
  • Increase in the number of office workers: As the number of working professionals continues to increase, there will be a surge in the number of online purchases. Accordingly, more transactions will take place via online payment portals.
Threats

Threats

  • Growing competition: More companies are entering the aggregating services spaces. Presently, there are quite a few online portals such as FreeCharge and MobiKwik that pose a threat to Paytm. Telecom companies like Airtel are now offering online payment options such as Airtel Payments Bank. Furthermore, even financial institutions, for example, banks, are now offering e-wallet services along with savings account.
  • Change in domestic rules: Changes in relation to domestic laws and tax liability could have a negative impact on Paytm’s plans.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • First-mover advantage: In India, this online payments provider was the first of its kind. Moreover, its time of establishment was ideal as during the same time smartphones were becoming more and more popular in the country.
  • Focus on users’ convenience: One of the most crucial factors that have boosted the popularity of Paytm is its focus on convenience. This platform is operational 24/7. Thus, users can make payments via the app from anywhere at their convenience.
  • Collaboration with merchants: Paytm has more than 20 million registered merchants, and this number is surging each day. This makes its digital platform a favourable option for consumers. The lucid interface of the Paytm App makes it possible for users to operate and make payments through it conveniently.
  • Lucrative offers: This company has attracted a lot of interest from consumers owing to its lucrative offers. These benefits are designed specifically, keeping in mind the perspective of Indian consumers. Accordingly, these offers have played a crucial role in Paytm’s revenue generation.
  • Portfolio of services: As mentioned earlier, this fintech company offers a wide range of services which includes online bill payment, online reservation facilities, etc. It also allows individuals to invest in digital gold and mutual funds. Consumers can make purchases from the Paytm mall. Thus, most of the things that an individual may want to do online can be done through this company’s digital platform.

Weaknesses 

  • Users lack awareness: A large number of registered users of the Paytm App are not aware of all features of the platform. Their lack of knowledge regarding technology tools combined with the fear of fraudulent transactions has a direct impact on this company’s performance.
  • Fear of going digital: Most Indians are yet to embrace the Digital India initiative. There’s still a lot of scepticism when it comes to cashless transactions. However, with time, one can expect to see a surge in non-cash payments.
  • IT infrastructure: There needs to be appropriate bandwidth and speed for the Paytm App to function properly. Although it is not a problem for Tier 1 cities in India, the same might not be the case in remote areas or some locations in Tier 2 cities.

Opportunities 

  • Increasing demand for payment aggregators: With the increasing reliance on technology, it appears that more people prefer online transactions to offline modes as they offer maximum convenience. Individuals can now pay their bills or make purchases from any location of their choice. The popularity of online payments has been increasing every day in India owing to the rise of payment aggregators such as Paytm.
  • Increase in the number of office workers: As the number of working professionals continues to increase, there will be a surge in the number of online purchases. Accordingly, more transactions will take place via online payment portals.

Threats 

  • Growing competition: More companies are entering the aggregating services spaces. Presently, there are quite a few online portals such as FreeCharge and MobiKwik that pose a threat to Paytm. Telecom companies like Airtel are now offering online payment options such as Airtel Payments Bank. Furthermore, even financial institutions, for example, banks, are now offering e-wallet services along with savings account.
  • Change in domestic rules: Changes in relation to domestic laws and tax liability could have a negative impact on Paytm’s plans.

Paytm: A competitive analysis

Paytm has a banking license contrary to its peers. This gives the company an advantage over its competitors, making the processing of transactions smoother and lowering the chances of failure. This table gives an insight regarding the competition Paytm faces from other players in the market:

Company Paytm FreeCharge MobiKwik
About It operates e-commerce platform and mobile-based payments. It extends an online platform designed for mobile-based bill payments and recharge. Essentially a digital wallet service that facilitates bill payments, online shopping, and online recharges.
Type Private Private Private
Revenue from operations in FY20 Rs. 3,280.84 crores Rs. 115 crores (approx.) Rs. 355.67 crores

Paytm IPO FAQs

What is Paytm IPO?

The digital payments behemoth, Paytm, is looking to raise funds worth Rs. 16,600 crores via an initial public offering. The public issue will comprise fresh issue as well as offer for sale of the exact same size (Rs. 8,300 crores each).

Who have been appointed as merchant bankers for Paytm IPO?

Paytm has appointed Goldman Sachs and JP Morgan as merchant bankers for its IPO. Moreover, this company has roped in ICICI Securities and Morgan Stanley.

Does MobiKwik IPO have a reservation for company employees?

No, Paytm IPO will not have a reservation for its employees.

What is the issue type of Paytm IPO?

The Paytm IPO will be a book build issue.

Who is the registrar of Paytm IPO?

The registrar of the upcoming Paytm IPO is Link Intime India Private Ltd.

Who are the investors of Paytm?

MobiKwik’s investors include Alibaba’s Ant Group, Soft Bank Vision Fund, SAIF Partners, and more.

Does Paytm have any listed peers?

No, Paytm doesn’t have any competitor that is listed.

What is the minimum market lot for Paytm IPO?

The minimum market lot for Paytm IPO is not yet known.

How can one check the allotment status of Paytm IPO?

Individuals can check Paytm IPO allotment status from the official portal of Link Intime India.

When is the listing date of Paytm IPO?

The listing date of Paytm IPO is not yet known.

Enjoy Free Equity

Delivery Trade for Lifetime

Get the link to download the app

Enjoy Lifetime Free Delivery Trade

Download the app now

Or Scan below QR Code

to download App

Open an account