Paytm May Scrap Pre-IPO Sale Plan Over Valuation Differences: Report
NDTV
Paytm, the Indian digital payments pioneer backed by Jack Ma's Ant Group Co., is considering scrapping the proposed Rs 2,000 crore ($268 million) share sale ahead of its initial public offering over valuation differences, according to people familiar with the development.
New Delhi: Paytm, the Indian digital payments pioneer backed by Jack Ma's Ant Group Co., is considering scrapping the proposed Rs 2,000 crore ($268 million) share sale ahead of its initial public offering over valuation differences, according to people familiar with the development.
The firm had been seeking a valuation of above $20 billion based on initial investor feedback, while advisers on the deal recommended a lower pricing, some of the people said, asking not to be named as the information is private. The company was last valued at $16 billion, according to unicorn tracker CB Insights.
Formally called One97 Communications Ltd., Paytm hopes to tap into strong investor demand fueled by easy liquidity that has buoyed India's blockbuster listings this year.
The company had reported a 10% drop in revenue during the year ended March 2021, after intensifying competition from Walmart Inc.'s Flipkart and Amazon.com Inc. cut its e-commerce and cloud sales by the same amount.
