The Government of Singapore, BlackRock Global Funds, and the Canada Pension Plan Investment Board are among the reported 122 institutional investors who have gobbled up more than $1 billion worth of shares in Paytm, which in a few short years has grown into an Indian financial powerhouse. Backed by Ant Group, Paytm has earmarked $1.11 billion in shares, equivalent to 82.35 billion rupees, in an expected initial public offering (IPO). The move was in preparation for what many expect to be India’s largest-ever IPO. If successful it would knock Coal India’s October 2010 listing from the top spot.
Paytm offered up to 183 billion rupees, up from its October offer of 166 billion. In all, institutional investors purchased more than 38.3 million shares for 2,150 rupees ($28.85) apiece. The listing continues a surge of activity which has seen the amount of money raised by Indian companies via IPOs through the first 10 months of the year more than double from the 2020s $8.54 billion to $17.22 billion so far in 2021. Important to note, however, that the number of companies holding IPOs has more than tripled to 157 from 49, so the average value amount raised per company has declined.
It began as a mobile recharging platform in Noida, India back in 2010. The company’s timing has been fortuitous as it benefited from its early listing as a quick payment option for Uber. Its digital payments arm surged after India banned high-currency bank notes six years ago. Paytm has since branched out into such services as airline and movie ticket booking, bill payments, savings accounts and investment services.
Top investor Ant Financial, which owns 27.9 per cent of Paytm, said it plans to sell just over 47 billion rupees, or $631.4 million, worth of shares. Close to half of the available shares have been claimed by institutions.
Acquisitions have also fuelled Paytm’s growth, especially over the past five years. In 2016 they bought education marketplace EduKart and fashion platform Shopsity, while adding social apps insider.in and NearBuy along with deal app Little a year later. Four acquisitions, led by TicketNew, followed in 2018. Following a breather, Paytm Brough CreditMate on Oct. 4, 2021.
Paytm has made 19 investments, including 12 as the lead. A highlight has been multiple investments in HungerBox, a full-stack B2B food and beverage technology company.